Another note

I had a reader email me this morning and ask about the brown line that is visible down in the bottom left corner of the VIX chart I posted last night.
That line is actually the upper line of the previous downhill chanel in the VIX/fear that procuced the Feb-April rally in the market. You can see that at the end of April, the VIX broke out of the brown downhill channel, then a few days later it pushed up from the topside of the brown downhill channel line for breakout confirmation, which is where I marked in the thick red line the strongest VIX sell signal and a 7 week sell off in the market began.

Alan