2 replies to this topic

[ogm]

Basicaly VIX has reached pretty overbought condition here. This doesn't happen often. Actually this is only the 5th time in 10 years. As in relative levels of fear are high. At the same time this is all occuring at higher low. Look at 1998 .. same deal. Higher relative levels of fear at a higher low.

Yeah, yeah, I know Overbought doesn't count and RSI is an ocillator... thats not the point.
This may be it, or we may have another week of turbulence with VIX possibly hitting 40 area, but this is getting close.

Edited by ogm, 10 August 2007 - 04:09 PM.

[ogm]

Also if you make a horizontal line at present levels around 28.... this level of volatility is more often associated with minor/bigger bottoms rather then with strong decline. Even if there is further decline, its leading into a ST/IT bottom.

[Mtrader]

If vix can break 31.3, then we can talk about crash.