Monday, June 14, 2010

The Five Day SPX Wall of Worry (SPX vs VIX) is Very Bearish


The five day SPX Wall of Worry (SPX vs VIX) is very bearish (Wall of Worry collapsed, VIX fell much more than SPX rose in recent days), see http://finance.yahoo.com/q/ta?s=^GSPC&t=5d&l=on&z=l&q=c&p=&a=fs,p12,fs,w14&c=^vix.

However, SPX's (S & P 500, http://bit.ly/i0nsT) volume is very light so far today 6-14-10 (see http://www.google.com/finance?q=INDEXSP:.INX), so, the upcycle since 6-8-10's 1042.17 cycle low (http://finance.yahoo.com/q/ta?s=^GSPC&t=5d&l=off&z=l&q=c&p=v&a=fs,w14&c=) probably didn't peak yet, since dramatic volume spikes usually coincide closely with/confirm price spikes/inverse spikes (cycle highs/lows). Trading long now, partly due to the BP oil spill situation, is risky. One should keep a close eye on BP now.

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