Replies to post #71147 on Abet Chichi2 (Chichi2)

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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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