Warning Signs of Market Corrections! - Aussie Stock Forums

Results 1 to 2 of 2
  1. #1

    Default Warning Signs of Market Corrections!

    Hi all,
    Thought I'd start a thread about finding Warning Signs of Stock Market Corrections.
    Knowing when the market is about to change course can help a trader protect any profits they have accumulated and even profit from the correction itself.

    I thought I'd share some of my own basic analysis which signaled to me that the US Market was changing trend. Of course I had no idea the market was going to react like it did in the last few days, but knowing when to take money off the table is an essential knowledge to a traders success.

    In this Hourly Chart below you can see the down trend in the Volatility Index has broken the above resistance trend line on 16th of April, then tested it as support as well as other key support levels (which where previous resistance levels). So you can clearly see the VIX changing course here. Of course in general, the VIX trends up while the Market is trending down, and is what I like to call my Market Fear Indicator

    It would be great to see others share some of their analysis and knowledge on this topic

    Last edited by Trend Hunter; 8th-May-2010 at 11:59 AM. Reason: Corrected Date from May to April

  2. #2

    Default Re: Warning Signs of Market Corrections!

    Go to my S&P post, last in the thread.

    Explains everything from correlation breakdowns (gold), to underlying pschology (changing reaction to positive earnings results), market internals (breadth), VSA, and global macro reasons for a pricing out of risk.

Similar Threads

  1. Market Corrections: am I missing something?
    By snabbu in forum Beginner's Lounge
    Replies: 26
    Last Post: 9th-November-2009, 01:18 PM
  2. Signs of Deflation
    By wayneL in forum General Investment and Economics
    Replies: 6
    Last Post: 20th-August-2008, 01:43 PM
  3. Market Corrections - 10 Worst
    By SevenFX in forum General Investment and Economics
    Replies: 6
    Last Post: 22nd-September-2007, 12:02 PM
  4. Signs that yes, we are actually in a credit bubble!
    By TjamesX in forum General Investment and Economics
    Replies: 2
    Last Post: 16th-August-2007, 03:10 AM
  5. Stocks during market corrections
    By mrWoodo in forum ASX Stock Chat
    Replies: 0
    Last Post: 24th-May-2007, 12:54 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums