What is special about 13.05? Today's chart shows why it is a level to pay attention to.

First, we inverted the VIX portion of the chart so that it tracks in the same direction as the NYA Index. Pay attention to the two solid red lines on the VIX portion of the chart. They show a triangular formation where a breaks out will occur soon, and the market will follow the direction of the breakout.

So, what exactly is the 13.05 level? It is today's level where the upper resistance of the inverted chart needs to be exceeded. In the next few days, the market will need the VIX to move above its (inverted) triangular formation to keep the market moving higher which would mean a lower VIX on a regular chart. Note that the red inverted line is down sloping, so the 13.05 level becomes easier to reach in the next 3 to 4 days. After that amount of time, the apex of the triangle will have been reached and a breakout will have occurred.