Bulls or Bears ... Who Has Control?

By: Marty Chenard | Fri, Jan 28, 2011
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Is a VIX breakout around the corner?

Today's chart shows the daily movement of the VIX versus the S&P 500. The VIX closed at 16.15 yesterday, and the VIX remains in positive territory.

However ... We have been commenting that: "investors should start paying attention to where the VIX is in relationship to fan line number 5 on today's chart. That resistance line and the support line intersect and form an apex that will be reached before the end of February.

These two lines indicate that the VIX will come under the "squeeze" of a converging resistance and support line. The result? A break out before the final apex is reached.

The declining lower/highs can't get much lower and still stay within the descending triangular formation. That suggests, that when the VIX does have its breakout, it will be to the upside and it will be a market negative. So, investors should keep their eyes on this VIX pattern from now until the end of February. (FYI: This chart is updated every day on our paid subscriber site.)

S&P500 and VIX



Marty Chenard

Author: Marty Chenard

Marty Chenard
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. 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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