Monday, May 11, 2009
VIX Channel Rejection - For Now
VIX rejected at 50% retracement off 38.66 top and at upper channel line. On my daily indicator chart all systems are go for a sell off, I am short now with SDS and SRS, but I have very tight stops and don't trust any move south at this time. In all reality, this fall should take us to the 836 to 800 range, but I'm not all in till I see us under 875. The VIX may be a good indicator to watch, but fear may not be as big a factor as pure profit taking in this sell off. I'll be watching the daily indicators on SPX for confirmation and the 60m indicators for timing trades.