(2/21/15)
The Volatility Index (VIX) is trending back towards its upward trend line
from last July's low. Trend line support looks to be around 12.50 so if
that level is tested I would expect a decent bounce to occur in the VIX. Meanwhile
since the VIX and S&P 500 typically move in opposite directions, if the VIX
moves lower in the near term, expect more upside in the S&P 500.
The 2125 to 2140 range looks like a potential target in the near
term. Finally
for those watching the price of Oil it looks like a developing 5 Wave pattern as
the 4th Wave bottomed in the lower 40's. Currently we are probably seeing
the early stages of a 4th Wave consolidation pattern which may last another 4 to
5 months before the last Wave down occurs. The target for the 5th Wave
would probably be in the mid 30's which coincides with the low made in early
2009.
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