- 20, 50 and 200 dma's are all merging together in a flat approach. This is a sign of consolidation. The VIX did this in August as well and was followed by a steady move up in the market and then the mess known as Lehman.
- Lower and Upper trend lines are converging into a triangle. What will break first?
- VIX is close to the lower trend line and PCR is near the bottom, heavy on calls. This is normally a bearish signal.
I think the market moves slightly down going into AA earnings tomorrow. We may see 820 tomorrow. From there, it is very hard to say with no clear signals.
I do believe we see the lower 700's before the end of April based on earnings.