Tonight we will take a look at two weekly bars charts of the VIX Volatility Index. In the top chart, we can see that the VIX is now sitting on its lower channel line of its nine-month rising channel which has been the VIX's launch point and market rollover point since last summer's mini crash.
Next taking a look at the lower chart, we see that the same moving average pair that set up in the last week of December and wreaked havoc on the market the first two weeks of January has now built the same lift setup again.
With earnings contracting fiercely and companies losing their ability to manipulate their shares through buybacks and a two-year dome top nearing completion plus with the VIX set up to rocket higher, logic dictates that the market is about to rollover again. Don't bet on the market rolling over just yet when you consider the absolute power of the tractor program that has been locked down on the market Tuesday and Wednesday keeping the market sideways and the fact that over the next five trading days the ECB, BOJ, and Yellen will have meetings and accompanying speeches making it very likely that they will jam the market higher possibly starting Thursday as the prop the market coalition knows that job number one is not to let the VIX start rising from its two setups above.
Trade well my friends