A Pivot Point on the VIX?

By: Marty Chenard | Mon, Apr 11, 2011
Print Email

There is something important happening on the VIX that I want to point out today ...

Note, that we have a yellow, down slopping resistance line on the VIX chart that goes from June 2010 to April 2011. That resistance line was penetrated to the upside on February 22nd ... the very day that the market started pulling back.

Also note that the VIX has a blue horizontal resistance line, where it is a positive condition if the VIX remains below it.

Here is the dilemma the VIX is in now: On Friday's close, the VIX was below the horizontal support line, so that is a positive. But, at the same time, the VIX is has remained above the sloping yellow line ... and that is a negative.

So, just as we are ready to start another Congressional budget battle this week, the VIX is precariously balanced with a double test possibility. Here are the VIX numbers to watch for today:

1. Today, a close above 17.80 on the VIX would expose the VIX to another spike up, and down action in the market. So, our Washington politicians have to get it right this week, or the market will judge them very harshly.

2. Conversely, a VIX close below 16.24 would be positive for market rallying action and a pat on the back for Congress.

VIX Pivot Point

 


 

Marty Chenard

Author: Marty Chenard

Marty Chenard
StockTiming.com
Asheville, NC 28805
Tel: 828-296-1200

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.

StockTiming.com is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

Be My Guest and Take Advantage of Our Free Membership ... Get a Free Membership to StockTiming.com ... Youll receive important daily messages before the market opens and direct links to todays important web pages. Information and messages that are often not posted on our website. There is no obligation or expectation on our part ... it is just our way of proving our accuracy and timing expertise to you. Please click here for your Free Membership.

Copyright © 2006-2014 Marty Chenard

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com

SEARCH





TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/