Traders awaiting the next shove
The volatility in the US stock market has eased. The Vix index is back below the 50 level (the low 48.11 today – currently at 49.58). Although still high it is well down from the highs at 85.47 level.
Another indication is the price action from the hourly chart above. Looking at the hourly chart, the pair index has been able to stay mostly between its 50 hour moving average above (white line) at 2549.47, and 100 hour moving average below (blue line) at 2472.32. The current price is between those levels at 2497.
The market is unsure of the next move and is looking for a shove outside those MAs. Look for momentum in the direction of the break.
For the week, the price high could not extend toward the 50% retracement at 2660.99. The high price for the week reached 2641.39 on Tuesday. The low for the week extended to 2447.49. That price did moved below its 100 hour moving average but momentum could not be sustained.