If VIX were a stock I’d be buying it right now.
Look at that initial impulse upward, the hard flag back to the up-turning SMA 50 and new bounce attempting to take out the SMA 200. Ah but VIX is not a stock and I am not buying it.
But I am making other adjustments in market positions based on the potentially negative message that the VIX above displays and the negative message that the VIX divergence to SPX has been displaying since we introduced it a few weeks ago in NFTRH 549 as the market was making its top.
Here is what NFTRH (#553) most recently had to say about it on Sunday…
The VIX divergence preceded [a 3 week trend of weekly lower SPX closing lows] and the rise in the VIX has thus far not been the spike of the previous two corrections, which implies future danger.
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