Wednesday, April 28, 2010

VIX - US has shown a sudden spike, and has moved from around 17 levesl to around 22 levels. It can be seen from the chart that the VIX has been refusing to go down below the 16 levels for last so many weeks. Even though the DOW was moving up VIX was refusing to go down. i have been wathching it from last two weeks closetly and during the later past of the week it has made a higher low even though the dow made a new year high thus signalling that the end might be near. It can also be seen from the chart the divergence of RSI and MACD which has propelled it to move further. The movement of VIX is clearly indicating that there is certain amont of fear in the market which is comming out when ever -ve new is comming, this can be seen by sudded spikes in the VIX in last 2 to 3 months. VIX has also made high high after forming a high low. so we might see it slowely inching upwards. so better watch out

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