Today's 12 month VIX chart shows a pattern that is fairly rare. This chart pattern has appeared a number of times in the past and has been pretty accurate. The pattern is where the VIX's support level is the bottom of a circle and the touch points follow the bottom of the circle. The difference I see is that the older patterns occurred over a longer period of time within the circle area.

In any case, this pattern should be watched because if it holds to the pattern, it will generate higher/lows on the VIX which will correlate with increasing fear levels, and increasing market risk. So, unless the VIX aborts this pattern within the next few days (by moving sideways or lower), then the market will start to increase its risk and fear levels. (Reference Note: This chart is updated every morning in Section 4, Chart 9c of the paid subscriber site.)

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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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Comments

Dave Fargo
08 Jul 11, 12:59

VIX vs. VIXY

The VIXY ETF has diverged downside from the VIX again, seems like the FIX is in.

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