Watch The Volatility Index This Week
Don't forget to include the VIX among your indicator tools this week. The VIX is important because it is an options related reflection of the market expectations over the next 30 day period.
Below is one of the VIX charts that we post daily. Pay particular attention to the rising fan lines on the chart and note that they are rising higher over time.
For this week, the more important focus should be the 17.88 gap level. Gaps don't always get closed, but more often then not, they do get closed.
If we close the 17.88 gap this week, there will be a market pull back tied to it. But, if we move above the current fan line seen on the chart, then the market will go into a more serious correction.