{"id":146019,"date":"2019-04-18T08:30:53","date_gmt":"2019-04-18T12:30:53","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=146019"},"modified":"2019-04-18T06:48:06","modified_gmt":"2019-04-18T10:48:06","slug":"us-stock-markets-setting-up-for-increased-volatility","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/04\/us-stock-markets-setting-up-for-increased-volatility\/","title":{"rendered":"US Stock Markets Setting Up For Increased Volatility"},"content":{"rendered":"
April 18, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

The US stock markets took a nosedive early in the regular trading session after the QQQ briefly advanced to new All-Time Highs this morning.\u00a0 With the QQQ and other symbols nearing fresh new highs, traders should expect volatility to increase as trading systems and traders to look for any signs of a top to set up.\u00a0 As we start to cross into \u201cnew high territory\u201d, some fear starts to come back into the markets and volatility is sure to increase.<\/p>\n

The Russell 2000 took a pretty big hit today as you can see from the chart below.\u00a0 This move lower is still well within our proprietary Fibonacci modeling system\u2019s bullish parameters and we\u2019ve highlighted a \u201cSupport Zone\u201d for our followers to understand where real price support is located.\u00a0 Any downside move below $152 would cause us to reconsider our bullish trend position, but right now this is nothing more than price rotation.\u00a0 Wait it out and look for opportunities when it bottoms.<\/p>\n

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The YM (Dow Futures) Daily chart, below, highlights just how fractured the US stock market really is today.\u00a0 While the Russell 2000 is rotating lower quite hard, the DOW futures are relatively FLAT and still trading near the recent highs.\u00a0 This fracturing of the major indexes suggests money may be moving away from sectors\/symbols that traders may interpret as risky at the moment \u2013 and into symbols that are more stable.\u00a0 For example, we might find that Financials and the Russell 2000 symbols may present a relatively high level of fear that a downside rotation in these sectors may be bigger and more dramatic than in the NQ, ES or YM.<\/p>\n

Still, our advice is to watch this move and wait it out a bit.\u00a0 Our \u201cSupport Zone\u201d for the YM is clearly highlighted with the Green Box on the chart.<\/p>\n

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Lastly, we want to highlight the Transportation Index for all of our followers to understand what is going on behind the scenes today.\u00a0 The Transportation Index is a fairly strong measure of future economic activity and output.\u00a0 It typically leads the US stock market by at least 20~30 days.\u00a0 The price advance, today, in the Transports would indicate that many traders believe the US economy is still improving and will still continue to perform well.\u00a0 If the Transports break to new highs, then we should see more continued upside price levels in many of the US stock market sectors.<\/p>

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Again, the markets are a bit fractured today with price action.\u00a0 And that leads us to believe we could see a spike in the VIX and volatility over the next few days\/weeks while this rotation plays out.\u00a0 Eventually, we believe a continued upside price leg will resume and we want to urge traders to play it safe for right now.\u00a0 Follow our \u201cSupport Zones\u201d as a key indicator for when the price has fallen into a potentially risky level \u2013 below support.\u00a0 If this happens, then we would begin to become concerned that price may be initiating a bigger move to the downside.<\/p>\n

Get my daily analysis and swing trade alerts at my Wealth Trading Newsletter and become a technical trader today!<\/p>\n

Chris Vermeulen –\u00a0TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com The US stock markets took a nosedive early in the regular trading session after the QQQ briefly advanced to new All-Time Highs this morning.\u00a0 With the QQQ and other symbols nearing fresh new highs, traders should expect volatility to increase as trading systems and traders to look for any signs of a top […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-146019","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=146019"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146019\/revisions"}],"predecessor-version":[{"id":146020,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/146019\/revisions\/146020"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=146019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=146019"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=146019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}