Volatility Index $VIX Is moving higher.

Posted by Investing Freak on October 31, 2009
Market Analysis / 1 Comment

On Friday The VIX went up 23.95%  while the market fell well over 2.5%.

VIX is a popular measure of the implied volatility of S&P 500 index options. Often referred to as the fear index, it represents one measure of the market’s expectation of volatility over the next 30 day period.

With the upward movement in the past 2 weeks the VIX has successfully broken a trend line going back to November 2008
See Attached Image (Click To Enlarge)


The VIX also had a bullish candlestick pattern on the 2D frame (2 days per candlestick)
Defeniton of this candlestick pattern is quoted below from Candlesticker:

Bullish Three White Soldiers Pattern is indicative of a strong reversal in the market. It is characterized by three long candlesticks stepping upward like a staircase.


The following are two charts; one showing the Three White Soldiers pattern on the 2D chart the other showing it on the hourly.
2Day Chart (Click To Enlarge)

And finally the Hourly chart (Click to Enlarge)


What does the bullish Vix momentum mean? Well by itself it means nothing to me. But when combining it with the increasing TED Spread, Broken S&P trendline, Numerous bank failings each weekend and many more indicators then it all signals that things are not well and the jobless recovery is not going to last much longer.

As always use caution as these are my observations and I do not make decisions for anyone other than myself.
Happy Halloween! 🙂

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S&P Rising Wedge Pattern

Posted by Investing Freak on May 12, 2009
Market Analysis / Comments Off on S&P Rising Wedge Pattern

I wanted to post this chart of the S&P with the following indicators added.
Bollinger bands with 2 SD’s and also the 36MA.
It is a 4 hour interval so every candlestick represents 4 hours.
2 candlesticks equal to a full day so that eliminates a lot of noise and allows me to see what happened the first part of the day and the last part.

I did get a temporary sell signal on the S&P today but that was before the second candlestick closed so it is not yet a Sell.
As always I will update the latest signals every weekend until I find more time to update more often.
(Click the chart to enlarge)


I hope you enjoy this chart and I really want your opinions on what to do with the direction of this blog and the types of things I post.


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