Thursday, December 11, 2008

Update - VIX

The DOW is currently down 52 as the indices fill the gap from this morning’s open.

The action on the VIX was interesting this morning. It came down while the market was down on the open – that is a divergence. It tested the bottom boundary of that triangle again and JUMPED off of it.

Here’s a close up from TOS:



The TOS charts are incorrect and not posting correct VIX information. This makes pattern work difficult. The Prophet charts are better, here’s a 20 day view of the VIX and you can see this morning’s action in the circle.



I just can’t see going long unless that bottom boundary breaks. It hasn’t, I’m watching it – closely.

Nate