S&P Volatility: Support Break

With the increasingly bearish action of the VIX moving averages there is now the additional break of support to contend with. All of this is bullish for the S&P.



In itself it's no firm trading signal but it does mark a shift away from the bearish rhythms of the market into something more sustainable for bulls. All this assumes there is no counter break of 38 which drives through all moving averages and declining resistance dating back to December. In the latter case another sharp drop would materialise which would have the potential to last until there was a test of 2008 VIX highs; anything from a 1 week to 3 weeks. But for now bulls may be ready to kick with more confidence.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

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