May 23rd. A VIX/ NYA dog fight?

Today’s Chart show’s our (updated) inverted VIX to the NYA Index.   We inverted the VIX so that it could track with the NYA.

Note that I have drawn 2 red lines … one on the VIX, and the other on the NYA Index.

While the VIX’s 9 day inverted trend line has moved higher (a positive), the NYA’s 9 day trend line has moved lower (a negative divergence).  This is showing a disconnect between the two, and that also poses a risky situation unless more QE money erases all the risk.

This is an apparent “dog fight” where two market forces are battling it out in order to see who is the victor.  So, unless you like being in the middle of a dog fight, you just might want to stay out of the middle of this fight.