Thursday, 24 May 2012

VIX, a weak close..but still bullish overall

Despite a last hour rally in the market (but still closing below the key sp'1330 level), the VIX closed a little lower, but the broader cycles are still bullish VIX.



VIX' weekly


So long as VIX holds above 21.00 tomorrow morning then the overall increase in market volatility can be said to be continuing.

Arguably, the index-short Bears will really need to see VIX break a new high next Tues/Wednesday (remember, Monday - US markets are closed!). VIX'27/28 remains the next top/channel target - which would equate to sp'1280.

More later, with a look at the index daily cycles - which (so far) appear to be putting in classic bear flags.