Three Months Stock Market Outlook to October 2014

June 21, 2014 at 11:53 am Leave a comment

The stock markets remain strong and upwards grinding. The VIX, the Chicago Board Options Exchange Market Volatility Index, a measure of the implied volatility of S&P 500 index options, is grinding towards the 10 year low level of $9.39, which we had in December of 2006.

Let us take a look how VIX on an NLT-Chart with multiple indicators:

VIX Historic Curve

The chart shows:

  • VIX on a six month low.
  • A major resistance area at a VIX level of $12.80 to $13.80
  • Key turning points were indicated by NLT Signals
  • The historic line for July expects rather a VIX drop.

Let us take a look, how the markets behaved in in July of 2006 forward to find which indicators helped us the most to find key turning points:


SPY Price Development 2006

Chart observation:

  • Key turning points happen at NLT Light Tower Signals.
  • Dark Green signals allow for a potential early entry, however, key support and resistance levels of NLT Box Lines and Purple Zones need to be respected.
  • Swing points show highlighted institutional volume bars.
  • After a stronger move, we find a period of sideways grinding market prices.
  • When NLT Price Breakout Zones are surpassed (Cyan Zone), trends develop, until they are passed whip saw price action is dominant.

Back to today’s SPY chart:

SPY Price Projection October 2014

Chart summary:

  • SPY is way above the historic trend.
  • When the Cyan Zone was left, as strong trend developed and a new cyan zone was not formed yet.
  • When you compare peak and valley of the historic curve, you see that we are entering into a period of strength as we did it in 2006.

Trade Summary:
Trade for shorter time frames now and catch trends-in-the-trend and position trade when the next major NLT Light Tower move occurs.

Our charts have lots of information, in particular, when overlaying three trading systems as in the chart above. What you see is:

NLT Top-Line: Blue, red and orange signals.

NLT HF-Trading: Dark-Green and light-green signals.

NLT Price-Breakout-Zone: Cyan color zone.

Each of those systems can be traded independent, while our professional traders prefer to us them all an added them sequential.

If you want to learn trading with our high probability system, schedule a personal consulting hour: or call +1 866 455 4520

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Good trading,


Entry filed under: Algorithmic Trading, Investor Education, S&P 500, Stock Market, Stock Trading, Technical Analysis, Trading, Trading Education. Tags: , , , , .

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