Healthy VIX levels ... for now.

Today's chart show's the Volatility Index (VIX) and its action back to January 2010.

Note what has happened to the VIX since May of 2010. After reaching a peak level last May, its has continuously made lower/highs and lower/lows ... the definition of a down trend.

Since the VIX moves opposite to the stock market, this has been a bullish sign. Currently, the VIX is below a level of 20, and below fan line number 5 which is currently a positive bias condition.

Now, take a moment and look far to the right where you can see the three trend lines converging on each other. A critical, apex intersection will occur before the end of February. Why is that important?

Because that is where the odds are very high for a pattern breakout ... and that could happen in the next few weeks, or next month. When it happens, the odds are for an upside breakout on the VIX which would be a negative for the market at that time ... so start putting the VIX on your radar if you haven't done so already.