Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Tuesday, August 30, 2011

NASDAQ and VIX 8/30/11

Stock Market Technical Analysis
Click on above image to enlarge

The above images are 1 1/2 year charts of the NASDAQ in the upper chart and VIX (Volatility Index) lower chart.  The NASDAQ had a small gain today but it was enough to get it back up into its 4 month downhill brown line channel.  The problem though is that when the VIX touched the center line of its 4 year wide horizontal blue line channel today, it turned back up as it did a couple of weeks ago.  The VIX absolutely must drop through that center line of this long term channel if this market is to keep  climbing.