Banking Index

VIXVIX crossed above all the Model resistance levels to challenge the Ending Diagonal trendline, closing above weekly mid-cycle support at 14.95. It is clearly on a weekly buy signal. My warning last week, “Once confirmed, the upside move may be very fast.” was accurate. Ending Diagonal patterns are known to completely retrace themselves, once broken.

(Bloomberg) Through most historical lenses, the tempest in… Continue reading

VIXVIX broke out above its Long-term resistance at 13.45 again to create a potential inverted Head & Shoulders formation. A buy signal has been made above its Intermediate-term resistance at 11.65. A breakout above the neckline suggests that the Ending Diagonal formation may also be at risk of a breach. An actual change in long-term trend may occur above the top trendline of the 15-month… Continue reading

VIX VIX rose toward its late January high at 32.09, but pulled back to close above 25.00 at the end of the week.  Most market watchers take alarm when the VIX exceeds 25.00, so this week’s action is accumulative.  The buy signal (NYSE sell signal) is confirmed by the Cycles Model.  The close above the neckline suggests a very robust follow-through rally… Continue reading

VIXVIX forged higher on Wednesday, creating a probable new Head & Shoulders formation before pulling back to its cycle Top.  It remains on a buy signal (NYSE sell signal).  The close above the neckline suggests a very robust follow-through rally in the following weeks.  Although SPX closed beneath a critical level, investors are no less complacent as a week ago.

(InvestmentWeek… Continue reading


— 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