The important thing is at what level the VIX closes today.

TweetThe VIX is the Volatility Index.    The VIX is likely to be volatile today … a volatile volatility index? The important thing is at what level the VIX closes today.  We do not want to see the VIX close above 23.05 today. There are 2 VIX charts posted below. The first is a close up, and […]

the Banking Index showed strength but short term weakness.

TweetAt the close yesterday, the Banking Index showed strength but short term weakness. The pluses were that the Accelerator and Timing indicator were in positive territory. The minuses were that the Accelerator had a cross-over down tick, so some fatigue has come in.   The Relative Strength pulled back (short term softness), while the RSI was […]

Our VIX chart has not broken below its support line,

TweetIt may be a “wait until Friday” when Janet Yellen speaks as a condition for the market now. As of yesterday, our VIX chart had not broken below its support line, while it still remained in positive territory.   (Do remember that the VIX moves opposite to the stock market … a lower VIX is […]

Will the VIX develop a problem?

TweetYesterday, the VIX closed at 15.58, so it looks like it is okay.   But is it really? The verdict is actually not in yet … take a look at October, April and now.  April was the lowest reading, with October and now not as low as it was in April.    With that condition, there remains […]

The Banking Index remains in a high risk condition …

TweetThe Banking Index closed at 60.27 yesterday which was a fairly big drop from last week’s update. Its prior C-RSI DANGER-Level of -2.97 dropped to -12.75 yesterday.  The general market is oversold at this point.

The Banking Index after the Brexit vote.

TweetThe Banking Index (the BKX) is still showing a very high risk profile, especially after the approved Brexit vote. Last Monday we said: “The market will be about the Brexit vote this week, so be very careful.“ The downside pressure has increased with the CRSI coming in at a negative -8.04 last Friday.   The Fed […]

VIX in a high DANGER condition for the medium term.

TweetThe VIX closed at 18.48. This is still a high DANGER condition for the medium term.  (Remember that the market moves opposite to the VIX.)  No change in past comments: “The fan resistance lines continue to move further out. This could be an escalating problem developing, so be very careful and remember that the Brexit vote is […]

Is there a possible danger pattern that the VIX could develop?

TweetIs there a possible danger pattern that the VIX could develop? If you look at the VIX tick for the very end of March, then the April 20th. tick, and then yesterday’s tick you will see what could develop into an inverted Head & Shoulders pattern.  If that should happen (and we don’t get a […]

The Inflowing Liquidity is (and has been) challenging its up trend

TweetInflowing Liquidity conditions … The Stock Market’s Inflowing Liquidity had a down tick to Lower-Q1 positive territory. (The Inflowing Liquidity is (and has) been challenging its up trend.) The red trend line did make a lower/low last week so it is under great stress with the thick horizontal line being a very important support.   

Dangerous Index conditions?

TweetFive key indexes and their action …  We are now in a very high stress condition.  The Institutional Index, the SPY, and the NDX./QQQ, were above their  horizontal resistance lines.    The NYA and the IWM were below their horizontal resistance lines.  The negative?  The Institutional Index, the NDX/QQQ and the SPY were all trending […]