The VIX is regarded as the Fear Index by many, so you would expect it to be screaming "Fear" after yesterday's market drop, the Libyan and Saudi troubles, and the huge earthquake in Japan.

It isn't ... instead it is showing that the market is acting like it is relatively undaunted by all the above concerns.

So, let's look at two VIX charts today, and discuss what the VIX is saying ...

Our first chart shows the VIX from June 2010 to 12:57 PM today. Note that the spike on February 23rd. set the high for a new resistance line from July 2nd. 2010.

After that, the remaining action created a triangular pattern which was a set-up for a VIX breakout.

The VIX broke out to the upside on Thursday, but notice what the daily bar did. (See both charts, the second chart is a close up of the action.)

What did it do? Thursday's bar went right up to and touched the 8 1/2 month resistance line and stopped. And then today, the VIX pulled back into the triangular pattern. (See where it was at 12:57 PM in the second chart.)

So, for all the concerns that have plagued the market this week, the VIX is remarkably calm and suggesting that the market may have the gumption to climb a wall of worry. The odds will favor that possibility as long as the VIX remains below the June 2010 to March 11 resistance line.

Friday's 12:57 PM close up chart for the VIX.

(Not a subscriber yet? Give some thought to joining us as one of our paid subscribers and see the dozens of chart updates we post daily. Charts that include inflowing Liquidity levels, Institutional Investor Buying and Selling levels, Institutional Accumulation/Distribution and data not found anywhere else.)