Wednesday, October 03, 2007

VIX rises towards 16DSMA target

The Qs got a minor retracement today on increased volume, but they really had to work on taking it down to S2 at the close. With the MACD at 1.25, the histogram below the zero line and the RSI now heading down, we may see more weakness tomorrow. The lack of volume into the closing 15 minutes was rather atypical and I'm not sure of the significant. However, the NYAD and the TICK were upslope for the last 1/2 hour and that generally bodes well for the bulls.
The VIX looked like it might hit my 4 day target of the 16DSMA, but failed to get very far and closed with a doji still above the 10 DSMA. The current VIX movement has now fallen into the "other 18% " category although based on current MACD readings I still expect to see it cross the 16DSMA in this cycle before starting down again.

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