The falling Ending Diagonal finished wave B and the break above the resistance line warns that a period of increasing volatility is under way again. If my count is correct we should now be in the very early part of wave [C], which should at least reach 50.93 longer term.
The break above the upper Bollinger Band, tells us that we need a couple of days of consolidation back towards the middle band at least, but also warns that we could be in the very early parts of the new uptrend. Also note that the middle band is curving slightly upwards warning of a possible new uptrend beginning.
The falling Ending Diagonal finished wave B and the break above the resistance line warns that a period of increasing volatility is under way again. If my count is correct we should now be in the very early part of wave [C], which should at least reach 50.93 longer term.
The break above the upper Bollinger Band, tells us that we need a couple of days of consolidation back towards the middle band at least, but also warns that we could be in the very early parts of the new uptrend. Also note that the middle band is curving slightly upwards warning of a possible new uptrend beginning.
50.93!!! That's quite a call. The Downtrend on the $VIX Weekly recently broke down by the momentum/trend indicators that I utilize. I agree that today's big rise in $SPX futures is just really consolidation. Then we go down...
ReplyDeletehttp://instigator928.blogspot.com/2010/11/intermediate-weekly-vix-downtrend-is.html
Hi Attitude928
ReplyDeleteI know it's somewhat of a call, but if my count is correct it should be the target.
I don't know what trigger will bring back such kind of volatility. I see a couple of options, being able to do that, but time will show.
The volatility might first arrive during the first quater of 2011, but something will trigger a deeper decline in the S&P 500.
Best regards
EWS