VIX Sell Signal Confirmed
VIX Sell Signal Confirmed
I was in meetings in the past few hours but just had a moment to consult my charts. And I am happy to report that according to the rules we received a confirmed VIX Sell signal today:
We had one close outside the BB – one close inside (higher of course), and one close higher above the second one. And that ladies and leeches is a confirmed VIX Sell signal. What I enjoy the most is that we actually painted a new SPX price high in the process – which is a technical divergence. Whenever the SPX and the VIX move in the same direction I take note, in particular when it happens at new highs.
Per the rules we should see a response (to the downside) within one week. Of course it would be good get price confirmation as well in the form of an inside candle, a doji, engulfing candle, RTV sell signal, you get the general idea. Personally I have a hard time blindly shorting this VIX sell signal as it argues against the ongoing trend, thus I propose that we wait for a bit more evidence (plus that Dollar candle today makes me nervous).
Cheers,
