Last Monday, we reported on the VIX (Volatility Index) and how it had an "Expanding Wedge" pattern.

We said that meant that the volatility "swings" would be more extreme from the trough to the peaks. In other words, we said to expect market "whipsawing" until the pattern ends and has a breakout.

Here we are a week later, and last Friday did show us a more extreme volatility move with the VIX gapping up.

In spite of the gap up on the VIX, conditions remained mixed with the C-RSI positive (but lower), and the S&P in a sideways trading range.

All the noise about Dubai is not a problem right now.

What would become a problem? The U.S. Dollar ... if it starts to have a fast move to the upside it will cause a sharp down move in our stock market, so keep an eye on the Dollar.