Thursday, March 26, 2009
VIX Chart - Possible Signal
Well lookie here. Another situation with the VIX and the PCR bottoming in unison. The last 5 times this has happened in 2009, the market reversed. See my post from last week for data around this. But there are two questions:
1. Will the reversal happen immediately or delay a day like last time?
2. How big is the reversal. The last time it was must smaller than the previous 4 times.
While the chart shows them bottoming in unison, we really don't know if they are a bottom yet. Both could move down again tomorrow while market rises. Wait for confirmation. Unfortunately, confirmation would be the VIX at 43, which may be halfway done with the reversal.