My last post here called for a halt in the rally at 1146 in the SPX, to be followed by about a 50 point drop in the index after it hit that level.Also noted was that the Vix had bottomed up and was wanting to resume it’s journey upwards.
Let’s look at where we are now. First the chart of the Spx
We are having important support ( green line) which has been defended for the past 3 months. Also the oversold nature of the MOSC at a level last seen in October 2008, points to at least a 20 point pull back in the index in the next 2 trading sessions.
let’s look at the Vix:
27.31- has been a vertical climb and now calling for a pullback.
Those who booked their shorts and carried longs would be a happy bunch on Monday.
