Sunday, December 11, 2011

VIX Confirms Rally

While IBD continues to call the "Market In Correction" even after most of the recent decline has been retraced, but the VIX is saying that the rally is for real with Friday's big decline as shown below.  We see that unlike the July period when the 12ma was above the 50ma and rising, the opposite is true now with the 12ma below the 50ma and falling.  A break below the October low of 24.44 would solidify the rally, which is now expected to last into the first of January with the SP500 approaching 1340 to 1354.

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