This is the third article of three focused on determining if a bounce in equities is imminent. Looking at the two charts below, the top chart is the VIX Volatility Index which shows that on Friday it printed a shooting star candle right at the upper line of its three month rising channel implying a short term top in the VIX.
click on image to enlarge
Looking at the lower chart above, the equities Put / Call Ratio, we see that it closed at 1.37 on Friday which is an elevated number that is not sustainable and historically pulls down quickly. Friday's closing was right at its longterm upper channel line also implying the bloodbath in selling may have reached its peak.
Trade well my friends
Alan
