Zeev's Turnips Patch-No Politics (ZEEV)

[plexxus]

The BPNDX is putting in bullish divergences under the recent price lows. (See Below) I think its only a matter of time until the BPNDX breaks out. Also the VIX while being a poor indicator overall is now breaking down. Consider back in 1995/6 when we were in a similar range bound market with a VIX in the same area....what happened from there? We broke out to the upside from 96 to 2000 with a rise in the VIX. (I'm not expecting that type of move here but rather a 5th wave advance). I think the same is likely to occur here. Time will tell as always. Low volatility in the market-our tight range the past 9 months-often leads to a low VIX....when we break this range I expect the VIX to move higher not lower as it did in 1996. Time will tell as always.

http://stockcharts.com/def/servlet/SC.web?c=$bpndx,uu[h,a]dhcayiay[dd][pb50!b200!f][vc60][ila12,26,9...