4 replies to this topic

[mss]

Nice day trade for those who played it. Trend change -----close, but that only counts in horseshoes, necking, and hand grenades. Now tomorrow is another day and...................... [attachment=5842:attachment]

[eminimee]

spx:vix right off a possible channel bottom and Aug 04 low. Whether the low is in or not...we are putting in a substantial low...with a good chance of a major low

http://stockcharts.com/c-sc/sc?s=$SPX:$VIX&p=W&yr=10&mn=6&dy=0&i=p45886761752&a=112837588&r=2736.png

[mss]

AGREED

[Echo]

mss,



I remember back in 2004 that the SPX:VXO approaching a value of 80 was widely argued as a reason that the rally from 2003 would end and the bear would resume. Of course, that came to pass and the ratio hit 90 then cleared 100 and zigzagged its way all the way up to 150 earlier this year! Applying my favorite BB when looking for extremes at 50:3, it looks like we tagged the lower BB on the weekly and that should do it depending how this week ends up. We also are approaching support on the cumulative NYAD seen on the lower panel and on the 70wk ema on the index itself. This seems like a reasonable risk benefit ratio for further long entries.

http://stockcharts.com/c-sc/sc?s=$SPX&p=W&yr=10&mn=6&dy=0&i=p90568464356&a=113810993&r=7411.png



The same on the daily chart when the ratio tags the lower BB 1/2 to 2/3 of the distance of the widening down limb from the point it starts dropping to the lowest point:

http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=10&mn=6&dy=0&i=p97463407776&a=113811791&r=4603.png



Echo.

[mss]

Nice charts and good analysis. The thing that is still troubling is the VXO or VIX has not as yet exceeded its reverse "blip" and until it does we only have a tradeable bottom or channel. NOW, today can change all that and away we go, TWT mss