VIX Buy Signal Received
MILLENNIAL TRIGGER WARNING: if you happen to be permabear then please top reading and immediately proceed to your safe space or nearest sensory deprivation chamber. For you are most definitely not going to like this post as it contains unpixeled bullish imagery as well as politically incorrect discourse. For everyone else: Our millimeter wave array in the Atacama desert has received a mysterious signal and expert consensus at this time points toward a VIX Buy Signal.
And here it is in all its glory. The stockcharts magnifier shows it quite nicely but for you skeptics I have another view below. Per your convenience I have plastered the rules right onto the chart, as to avoid inane questions that may raise my already elevated blood pressure.
Now be advised that the resolution of this pattern suggests a bullish market reversal in equities in the course of the following week. So that does not mean we can’t whipsaw around here for a while or perhaps even drop further. And yes, some VIX Buy Signals fail – especially during bear markets. And we don’t know yet if we are in one or if 2018 merely represents a LT correction.
That’s quite a wild chart, ain’t it? The weekly and monthly panels do a pretty good job of showing us the big outliers and at least in weekly terms this week definitely qualifies. Now on the monthly end I must concede that this does not compare to what we went through earlier this year or back in 2015.
But there is a reasonable chance that the bears have shot their load and that we are going to at least see a short term reversal. The implication of that of course is that a breach of the current lows of 2712.25 must hold or all hell breaks loose.
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