Thursday, April 21, 2011

VIX Buy Signal In Force

While the bears are getting antsy the VIX has quietly given a buy signal as it reversed lower off of its now downsloping 50ma.  This is a pretty reliable signal, and it would take a lot to get a VIX sell signal at this point.  Some point out that a close below the lower Bollinger band followed by a close back inside it is a sell signal, but this generally works on a short term basis only and should not be relied on for the intermediate term.

I would not be surprised to see some selling next before a rally during the first week of May, but the trend is up and it will take a lot more than a couple of down days to change that fact.

Biogen exploded higher today probably completing wave (iii) of [iii].

Have a great weekend.

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