The last time the VIX closed under 60 five days in a row was on October 8th. Just to set some historical context, the VIX was trading in the 30s at the beginning of that five day stretch.
interestingly the 20 MA of the VIX crossed below the 50 MA of the VIX today. That tells me short term sell on the VIX is in effect. Confirming this is the 13 MA is about to crossover the 34 MA in a classic 13-34 cross.
what this tells me is we are about to see low VIX trend coming in. link to my chart: http://stockcharts.com/h-sc/ui?s=$VIX&p=D&b=6&g=0&id=p77065855913&a=122150945
The Vix cash index decreased from mid-December 2007 to about the twenty-seventh of the month last year and several technical indicators are projecting higher levels in the overall stock market indexes at this time. It would not be surprising to see higher stock market indexes by the Presidential Inaugaration Day of January 20, 2009. The Vix cash index decreased from 80.06 at the October twenty-seventh close to 47.73 on the November fourth close, the day of the U.S. election.
Yes Bill, you called last week we should be trading closer to 50 than 70 this week.
ReplyDeleteHow do you interpret this last VIX move ? Too early to call a trend ?
cheers
interestingly the 20 MA of the VIX crossed below the 50 MA of the VIX today. That tells me short term sell on the VIX is in effect. Confirming this is the 13 MA is about to crossover the 34 MA in a classic 13-34 cross.
ReplyDeletewhat this tells me is we are about to see low VIX trend coming in. link to my chart: http://stockcharts.com/h-sc/ui?s=$VIX&p=D&b=6&g=0&id=p77065855913&a=122150945
The Vix cash index decreased from mid-December 2007 to about the twenty-seventh of the month last year and several technical indicators are projecting higher levels in the overall stock market indexes at this time. It would not be surprising to see higher stock market indexes by the Presidential Inaugaration Day of January 20, 2009. The Vix cash index decreased from 80.06 at the October twenty-seventh close to 47.73 on the November fourth close, the day of the U.S. election.
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