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The VIX Continues to Warn, or to Mislead...


Yesterday's major-downside reversal in the cash VOLATILITY S&P 500 (VIX) from a recovery high at 16.75 to today's low at 12.89 (-23%), ended the most recent upmove from 11.99 to 16.75.

That said, however, let's notice on the enclosed weekly chart that the VIX continues to hold 3-year support in the 15.00-11.00 range despite the series of new all-time highs in the S&P 500 Index (SPX).

Today, the SPX so far is digesting yesterday's huge gains, presumably ahead of another thrust to take out the all-time high at 1813.155.

Let's watch to see if the VIX confirms another new all-time high in the SPX, or if the VIX again preserves its series of intermediate-term lows, which will provide additional evidence that the VIX is putting in a major intermediate-term bottom that is warning us the one-way strength in the SPX is on borrowed time.

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