Using VIX to determine upside potential...

R

RangeTrader

One of the oldest tricks in the book.

Very little upside left in this rally. One more daily rally cycle is all I am expecting personally without QE3. Little end of the month wildcard there.
 

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I was recently looking at VXV... (S&P 500 VIX, but I don't like it... Acts weird around triple OPEX.)

Anyway... Bottom line for the market moving forward in the short term term...

Were topping out on daily swing highs into new highs toward 1390 here without Bernanke coming through with QE3. Plain and simple.
 

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Hmmm... The VXV signals a lot of times are leading the actual S&P 500.

That is interesting. I have heard people talk about that before...

Marked the leading locations with check boxes
 

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Pick some highs in the past with equivalent VXV levels to current swing highs.

Draw trendlines between them to determine the degree of divergence.

For example... What this tells us right now is that if we reach the same complacency levels of the recent yearly highs we would still be around 20 points short of the highs.

The core of the market is weakening at 20 points per 3 months...

Now, if we could only GET SOME QE3 things would change!!! :D
 

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Just analyzed the weekly market core... Currently moving at a rate of around 20 points upward per half year... Hah...

Weak...

Cmon EU... Collapse so we can get some fear for a real bull market again!
 

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