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Thursday, June 25, 2009

The Vix Chart

They say you shouldn't apply waves to the VIX but I cannot help it. I posted a chart a while back in March and proposed a double zigzag down from VIX peak:
Well, I present today's updated chart and I must say, it looks pretty decent. The VIX broke out of a trinagle move. Question is, was this a B wave trinagle or a 4th wave triangle?
The difference is a B wave triangle means a drawn out final C wave down to VIX final low is coming and should take weeks to play out.
However, if my pattern is not a B wave and instead a final 4th wave triangle, that implies a quick thrust move, such as that has occurred is all she wrote for the VIX low.
So once again, you can see how the market is at a decision point. 4th wave or B wave? The VIX is a key chart to keep and eye on over these next few days.



    Looking forward to read "VIX and MORE"'s take on it too....he called 26 the bottom, back when it was trading in the mid 30's i believe.

  2. Nice work Dan!
    I love Michael Jackson... I hope the market die soon.

  3. I've had a target of 25 on the VIX for some time, but dude? Party is ON with VIX at 17. Was not sure numbers that low still existed. GL with the call. I see it, but just can't go that low. Everything else you have is right in line with what I am thinking. GL and have a great weekend.

  4. If VIX go to 17 that's for sure is the end of P2 and P3 will roar back like a Black Bear