Today's chart show's the Volatility Index (VIX) and its action back to January
2010.
Note what has happened to the VIX since May of 2010. After reaching a peak
level last May, its has continuously made lower/highs and lower/lows ... the
definition of a down trend.
Since the VIX moves opposite to the stock market, this has been a bullish
sign. Currently, the VIX is below a level of 20, and below fan line number
5 which is currently a positive bias condition.
Now, take a moment and look far to the right where you can see the three trend
lines converging on each other. A critical, apex intersection will occur
before the end of February. Why is that important?
Because that is where the odds are very high for a pattern breakout ... and
that could happen in the next few weeks, or next month. When it happens, the
odds are for an upside breakout on the VIX which would be a negative for the
market at that time ... so start putting the VIX on your radar if you haven't
done so already.
Marty Chenard is an Advanced Stock Market Technical Analyst that has developed
his own proprietary analytical tools and stock market models. As a result,
he was out of the market two weeks before the 1987 Crash in the most recent
Bear Market he faxed his Members in March 2000 telling them all to SELL. He
is an advanced technical analyst and not an investment advisor, nor a securities
broker.
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