Stock Charts: Markets Try to Sell Off, But Not Quite

$SPX 60 Minute:  Still in the up channel.  All we did today was test the lower channel and confirm it's short term importance for a potential break down.  We have not ruled out another splash higher.

$SPX Daily:  Closed at and is currently struggling at what is support/resistance, but no real change.

IBM: Another solid up day, which probably aided the DOW from a bigger down day.  Volume was down today.

JNK: An outside down day, could this be a top? Way to early to tell at this point. It’s really the first crack in the armor.

$VIX: Interesting up day, but it needs to get back into the wedge zone on a closing basis to reduce the bearish view currently.  But that could be a Wave E over throw and more upside would confirm that potential view.  Worth keeping an eye on for the time being.

The Risk Chart:  Inquiring minds need to know.  A reader sent me the following email:

Hi J.D.,

I was hoping I'd get this email in before you wrote your daily Stock Charts (which I love by the way), but I see it has already been posted. I was going to ask you to comment on your risk chart ($SPX/$VIX). It seems to have broken above it's upper trend line. It's also approaching the level reached in January of this year, which caused the $SPX to drop 90 points. Is the risk chart indicating anything at the moment?

Thanks

Reader's email is very timely as the risk chart is bumping key resistance as we speak.  What it does here could be a confirmation.  I'm still expecting this ABC pattern up in the market to turn over and with the risk chart at resistance, we should know soon.  I've done a little EW labeling, and it too looks like an ABC pattern.  It rolled over today, but we need to trade below wave B to support the bearish view.

From My Trading Desk

OSIS: Continues to display a potential H&S top. A little downside follow through would be a nice initial confirmation.

COH: It’s still spinning in place at the resistance zone. Bollinger Bands continue to pinch. It still looks tired to me but another splash higher is not out of the question.

NEM: Same as it’s been the past few days, nothing new.

FFIV: Still grinding around the moving average.  And still an aggressive trade.

IYR: Ending diagonal? A little too early to tell but we should know soon.  I'm using this to look at possibly buying the SRS, which might be making an ending diagonal.

From My Trading Desk: Golfing all day so no trades and none warranted. Good day to golf!

Happy Trading.

J.D. Rosendahl, Rosey