Wednesday, March 6, 2013
Ready for launch - The VIX is going to 30+ in the coming weeks
The Volatility Index (VIX) has spent the last several weeks testing a very important lower channel. After the explosion higher on 2/25/13 the VIX has now come back down and closed the day at 13.53. This is an important level because the previous intermediate term swing low (eod) was 13.45 back on 8/13/12. With an equity p/c ratio of just .54 and the VIX holding major support all week, we should see a gap lower tomorrow in equity prices that ultimately takes the SPX to 1440 sometime in March-early April.