Will markets really rally? The Options volatility Index (VIX) has to settle below its 200 day average for that to happen:
It’s been really confusing for traders to figure out market direction in the last few months, the market fails to rally miserably every time it attempts to do so, and every time it goes down it produces a powerful buy signal… Enough is enough, I am not buying unless I see the VIX moving and staying decisively below its 200 day average:
We need to see at least 2 closes below the 200 day average:
Everybody is talking about volatility remaining high in coming days and weeks, therefore we have to wait for the evidence to show up on the chart, if volatility rises again it will put pressure on the markets once again.
Don’t let markets fool you, as long as the VIX stays above this average, market rally attempts will keep failing!
Stock Market Investing Strategies and Stock Market Speculation by..
Scott Smith – Invest In The Stock Market © 2008 – 2010
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