Best Financial Markets Analysis Article The VIX is regarded as the Fear Index by many, so you would expect it to be screaming "Fear" after yesterday's market drop, the Libyan and Saudi troubles, and the huge earthquake in Japan.

It isn't ... instead it is showing that the market is acting like it is relatively undaunted by all the above concerns.

So, let's look at two VIX charts today, and discuss what the VIX is saying ...

Our first chart shows the VIX from June 2010 to 12:57 PM today. Note that the spike on February 23rd. set the high for a new resistance line from July 2nd. 2010.

After that, the remaining action created a triangular pattern which was a set-up for a VIX breakout.

The VIX broke out to the upside on Thursday, but notice what the daily bar did. (See both charts, the second chart is a close up of the action.)

What did it do? Thursday's bar went right up to and touched the 8 1/2 month resistance line and stopped. And then today, the VIX pulled back into the triangular pattern. (See where it was at 12:57 PM in the second chart.)

So, for all the concerns that have plagued the market this week, the VIX is remarkably calm and suggesting that the market may have the gumption to climb a wall of worry. The odds will favor that possibility as long as the VIX remains below the June 2010 to March 11 resistance line.

Friday's 12:57 PM close up chart for the VIX.

** Feel free to share this page with others by using the "Send this Page to a Friend" link below.

Send This Page To a Friend

By Marty Chenard
http://www.stocktiming.com/

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information

Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

Marty Chenard Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.