Monday, June 10, 2013

VIX Daily Chart

VIX daily chart shows a move higher to begin the day. Price pierced the upper pink band last week and, although not leaping up through to the extent shown for the December, February and April market sell offs, reversed course to back kiss support at the 200-day MA. As a general guideline, the market dips should not be bot unless the VIX drops back under the 200-day MA at 14.94, thus, today and tomorrow are important. The 20 MA is moving up through the 50 MA which is bullish for volatility (bearish for equities). Note how the 200-day MA has leveled off and is hinting at rising which also indicates higher VIX numbers moving forward.

The green boxes show the prior times that markets mounted a come back rally with VIX plummeting. The VIX drops under the 200-day MA in concert with the RSI and other indicators losing the 50% level, or zero level for MACD. The VIX typically gaps down as the long buyers enter in force to buy the equity markets.  VIX is at a critical juncture today and tomorrow and will either collapse under the 200-day MA, with the indicators dropping as well, confirming a market bottom like the prior times and blue skies and rainbows ahead for market bulls, and time to buy the dip, or, the VIX bounces higher off the 200-day MA catapulting towards 18, 19 and the 20's in concert with the broad indexes selling off. Watch the indicators to see if they lose the 50% levels, or not. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

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