AI
Wednesday, April 08, 2009 9:03:02 AM
StockTiming.com - Update on the "VIX Watch"
Marty Chenard
April 8, 2009
Overview: First, take a look at the S&P 500's action since last September. Note that it started its severe correction at that time.
In the past two weeks, many investors were happy with glee, thinking that a nice and safe Bull rally is in play ... after all, the S&P's January/March resistance line was broken to the upside.
Sounds good, but there is more to the story ...
Since last September, the VIX has formed a huge triangle that is coming to a breakout point soon.
The convergence of the triangle's resistance and support are creating a very tight squeeze as the VIX becomes perilously close to the apex.
Last week we mentioned that the breakout would occur before the middle of April. We are almost there now. I don't expect to be writing about a breakout the end of next week ... it will have already happened by then.
The VIX breakout will be a "Red Flag" condition that should be carefully watched by all investors.
http://www.stocktiming.com/Wednesday-DailyMarketUpdate.htm
_________________________________________________________________________
Marty Chenard
April 8, 2009
Overview: First, take a look at the S&P 500's action since last September. Note that it started its severe correction at that time.
In the past two weeks, many investors were happy with glee, thinking that a nice and safe Bull rally is in play ... after all, the S&P's January/March resistance line was broken to the upside.
Sounds good, but there is more to the story ...
Since last September, the VIX has formed a huge triangle that is coming to a breakout point soon.
The convergence of the triangle's resistance and support are creating a very tight squeeze as the VIX becomes perilously close to the apex.
Last week we mentioned that the breakout would occur before the middle of April. We are almost there now. I don't expect to be writing about a breakout the end of next week ... it will have already happened by then.
The VIX breakout will be a "Red Flag" condition that should be carefully watched by all investors.
http://www.stocktiming.com/Wednesday-DailyMarketUpdate.htm
_________________________________________________________________________
invest at your own risk, based on your own due diligence, at your own risk tolerance
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
