Archives

VIXSPX— VIX rocketed to 53 on Monday morning, followed by a pullback to its Megaphone formation.  While there was a huge push-down in VIX, the VIX ETFs had their shorts squeezed.  An interesting dichotomy.

The SPX epic decline is rolled back. 

Monday’s epic decline in SPX was rolled back by a 50% retracement back into green in the days that followed.… Continue reading

VIXSPX

— VIX exceeded its Megaphone target by Friday’s close. There is likely to be a pullback to Cycle Top support at 19.63 from here, followed by a stronger rally. Investors finally caught on that they needed to hedge their positions.

SPX “triggers” the Broadening Wedge.

The SPX fell through its Broadening Wedge trendline, triggering a potential move to the weekly Cycle Bottom support at 1639.64.… Continue reading

VIX— VIX made a new Master Cycle low on August 5. This week it broke (marginally) above its prior high. The next move out of a Broadening Bottom or Megaphone formation is to break out above the upper trendline. Its average target matches that of the Wave A top in mid-December.

SPX bounces from the Broadening Wedge trendline.

The SPX rallied off its Broadening… Continue reading

VIX

— VIX made a reversal pattern this week, but closed near its weekly low. The next move out of a Broadening Bottom or Megaphone formation is to break out above the upper trendline. Its average target matches that of the Wave A top in mid-December

SPX bounces from Long-term support again.

The SPX rallied off its Long-term support at 2066.42. The May 20 high at… Continue reading

VIX— After breaking out above Cycle Top resistance, VIX dropped to the bottom of its trading range, making a new low in a supernormal collapse. This is referred to as a Broadening Bottom or Megaphone formation which is a reversal pattern. Its average target matches that of the Wave A top in mid-December.

SPX bounces from Long-term support.

The SPX rally fell short of its… Continue reading

VIX— VIX gapped through its declining trendline, giving a confirmed sell signal for SPX. There is a potential Head & Shoulders formation with implications of a much higher outcome once the neckline is exceeded.

SPX challenges Long-term support.

SPX challenged weekly Long-term support at 2058.31 a second time, closing just above it. This leaves SPX on a confirmed sell signal and vulnerable to a… Continue reading

VIX— VIX gapped through its declining trendline, giving a confirmed sell signal for SPX. The rally has resumed with implications of a much higher outcome.

SPX challenges Long-term support.

SPX challenged weekly Long-term support at 2056.19, closing just above it. This leaves SPX on a confirmed sell signal and vulnerable to a drop to or below double trendlines near 2025.00 (also round number support at… Continue reading

VIX— VIX closed above Intermediate-term support at 13.68, maintaining the aggressive sell signal for SPX. A breakout above its descending trendline and prior high at 15.74 will announce the resumption of the rally in VIX and confirm the sell signal in the SPX.

SPX closes beneath Short-term support.

SPX closed beneath weekly Short-term support at 2108.79 but hasn’t yet closed beneath Intermediate-term support at 2096.52.… Continue reading

VIX— VIX closed above Short-term support at 13.10 and Intermediate-term support at 13.63 maintaining the aggressive sell signal for SPX. A breakout above its prior high at 15.74 will announce the resumption of the rally in VIX and confirm the sell signal in the SPX.

SPX closes beneath Short-term support.

SPX closed beneath weekly Short-term support at 2110.53 despite a massive effort to make a… Continue reading

VIX— VIX challenged its Short-term support at 13.13, then closed above Intermediate-term support at 13.66, maintaining the aggressive sell signal for SPX. A breakout above its prior high at 15.74 will announce the resumption of the rally and confirm the sell signal.

SPX closes a second week beneath two major supports.

SPX remained beneath its Intermediate-term support at 2096.70 despite a massive effort to regain… Continue reading