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Monday, December 25, 2017 10:03:59 PM
Weekend Analysis by Amateur Investors
By: Amateur Investors | December 25, 2017
The VIX has been making a series of lower Lows (points L) since the 2009 low. Also notice each time it has rallied its downward trend line (red line), on a log scale, has acted as resistance.
With the VIX still near an all time low one would expect it will eventually test its downward trend line at some point. Currently the downward trend line is nearing the 20 level so this would be a potential target. Meanwhile since the VIX and S&P 500 normally move in opposite directions a rally in the VIX would lead to a pullback in the S&P 500 like has occurred the previous two times (points A to B).
If a pullback were to occur a drop back to the 200 Day Moving Average would be a potential target which is nearing the 2500 level.
http://www.amateur-investors.com/AII_Weekend_AnalysisDec_23_17.htm
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By: Amateur Investors | December 25, 2017
The VIX has been making a series of lower Lows (points L) since the 2009 low. Also notice each time it has rallied its downward trend line (red line), on a log scale, has acted as resistance.
With the VIX still near an all time low one would expect it will eventually test its downward trend line at some point. Currently the downward trend line is nearing the 20 level so this would be a potential target. Meanwhile since the VIX and S&P 500 normally move in opposite directions a rally in the VIX would lead to a pullback in the S&P 500 like has occurred the previous two times (points A to B).
If a pullback were to occur a drop back to the 200 Day Moving Average would be a potential target which is nearing the 2500 level.
http://www.amateur-investors.com/AII_Weekend_AnalysisDec_23_17.htm
• DiscoverGold
Click on "In reply to", for Authors past commentaries
****************************************
*** For Market Direction and Trends visit our board:
https://investorshub.advfn.com/Market-Direction-and-Trends-26249/
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
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