The TradingEdge

[Mike_Mac]

re: vix -- Thanks for posting. Very helpful. The only thing right now is that todays candle needs more volume and price action to upside to complete a breakout. As it stands, we have spinning top yesterday and a doji type candle at highs. Normally a top. But the day ain't over and this is a very instructive chart regardless. And as I write, I see at least a modest pickup in volume and another move up. Within the wedge there are more solid hits to bottom which generally means that is the side that will break (but of course this last hit to the top took it over the wedge). So thinking for now its a temporary/false breakout to upside. But we need to watch the close here because everyone may just want to head to the exits. So far, I sense some exhaustion though when looking at the various sector/leader charts on 1 min and other intraday timeframes (but its certainly not clear to me). It seems to me that we could have a lot more to go on vix/vxx especially if we retest the 30-31 area and bounce with some gusto next week...