Note, that we have a yellow, down slopping resistance line on the VIX chart that goes from June 2010 to April 2011. That resistance line was penetrated to the upside on February 22nd ... the very day that the market started pulling back.

Also note that the VIX has a blue horizontal resistance line, where it is a positive condition if the VIX remains below it.

Here is the dilemma the VIX is in now: On Friday's close, the VIX was below the horizontal support line, so that is a positive. But, at the same time, the VIX is has remained above the sloping yellow line ... and that is a negative.

So, just as we are ready to start another Congressional budget battle this week, the VIX is precariously balanced with a double test possibility. Here are the VIX numbers to watch for today:

1. Today, a close above 17.80 on the VIX would expose the VIX to another spike up, and down action in the market. So, our Washington politicians have to get it right this week, or the market will judge them very harshly.

2. Conversely, a VIX close below 16.24 would be positive for market rallying action and a pat on the back for Congress.

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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.

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