VIX closed above its Intermediate-term support at 13.29, leaving it on a buy signal. This week has been a consolidation week after breaking out above its Triangle formation. The next important milestones are the trendline at 22.50 and Cycle Top resistance at 24.15 where a long-term breakout of the downtrend may occur.
VIX made a 65% retracement of its rally off the 12.80 low. It remains on a weekly buy signal. The next move calls for a breakout to new highs. While traders are anticipating a calmer season ahead, the VIX warns the opposite may happen.
SPX bounces off its trendline.
The SPX bounced off Intermediate-Term support/resistance at 2021.74 to make an 80%… Continue reading
— 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
— 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 challenged its weekly Intermediate-term resistance at 16.45 before closing beneath its mid-cycle support at 14.32. VIX remains on a buy signal.
SPX closed above Intermediate-term support.
SPX challenged its Short-term support/resistance at 2080.89, but declined to close above Intermediate-term support/resistance at 2062.29. Further weakness may put its Long-term support at 2014.69 in its sights. Beneath that is the lower trendline for the Broadening… Continue reading
— VIX closed above Long-term support at 13.93 and weekly mid-cycle support at 14.24. Partial retracements such as this are a warning that Volatility may continue to rise. The Cycles Model suggests a possible 3-week rally ahead.
SPX has a quiet holiday week.
SPX had a quiet but positive week closing near the upper trendline of the Orthodox Broadening top at 2100.00. Final resolution of… Continue reading
— VIX closed at its weekly low, possibly intended to retest the lower trendline of its Ending Diagonal before reversing higher. It is on track to make a Trading Cycle low on Wednesday. Once accomplished, the ensuing rally may be surprisingly sharp and strong.
SPX re-enters its Ending Diagonal.
SPX re-entered its Ending Diagonal and appears to be capable of challenging the upper trendline one… Continue reading
SPX’s closes flat this week.
SPX made a new high on Thursday but closed flat for the week. On Friday, it tested its weekly Short-term support for the second time since April. The surprise of the week is that the… Continue reading