Technical Alerts Flying in S&P and VIX (SPY, VXX, VXZ)
The S&P 500 and the SPDRs (NYSE: SPY) as the key tracking ETF may have just found trouble on the charts this Wednesday as the DJIA is down over 200 points and as the S&P 500 is down by more…
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Adam Hewison of INO, our technical analysis affiliate partner, is showing that the downside risks are growing in a short audio-video chart analysis today. Hewison noted that breaking through the trend-line would indicate a potential move down to 1060 or so in the S&P 500. In Spyders terms, that is roughly $106.00 per share of the ETF plus or minus whatever snapshot premium or discount the ETF has to the S&P 500 at any given moment.
Conversely, that would imply upside moves in the two VIX ETF and ETN products. The iPath S&P 500 VIX Short-Term Futures ETN (NYSE: VXX) is up a sharp 6.5% at $22.70 on over 13 million shares in mid-day trading. The iPath S&P 500 VIX Mid-Term Futures ETN (NYSE: VXZ) is far less liquid with volume of under 500,000 shares per day. Its shares are up 2.4% at $86.17 in mid-day trading.
We never rely on any single source when it comes to technical analysis. Carter Worth of Oppenheimer just on Friday gave some of the same concerns on a CNBC video after stocks had rallied so much. In fact, he noted that stocks were fairly valued in his video showing that stocks were running out of gas.
After taking a look at StockCharts.com (illustrated below) for the moving averages, we always look at the 50-day and 200-day moving averages for the Spyders. The Spyders show a 50-day moving average of $111.00 and a 200-day moving average of $108.89.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.