Could It Be?
Could It Be?
We have been waiting for this moment for almost three months now. Could it be today is the day?
Let’s hope we are getting a close outside the 2.0 Bollinger on the VIX. For you noobs – let’s review the VIX buy/sell signal rules again as it has been a while since I posted them:
For a $VIX confirmed signal you need 3 things:
- a close outside of the 2.0 Bollinger Band (20 day, SMA
- a close back inside the 2.0 Bollinger Band – this issues the signal
- a higher close (sell) or lower close (buy) than the close of the day back inside the 2.0 Bollinger Band – this confirms the signal.
Once you get those 3 things a major reversal usually occurs within the next week. The sell signals are far more accurate than the buy signals.
As for downside targets on the SPX I would eye 1150 – after that I’d be out. However, based on my SPX P&F chart the following targets are possible:
As I said – there’s 1150, then there’s 1110, and if things get really fun we could see 1060. However, that’s where I would see a floor, which would most likely be followed by a rapid rebound.
But whatever you do – close your long positions right now – if you haven’t done so already.
Last warning – the writing is on the wall. Remember: Bulls make money, bears make money (not lately – hehehe), and pigs get slaughtered 😉
UPDATE @ the closing bell: Wooohoooo!!! Strike 1:
Looks like the bulls may be tripping over their own greed soon. Well – we need one close higher and one on the inside now. But this is a good start.
