Wednesday, April 28, 2010

VIX at the Frontier

The Volatility Index (22.81) is at the 200 day exponential moving average at Tuesday's close. The chart shows that the 200 day ema has been a formidable barrier in the past, but when the 200 day ema is taken out volatility levels can easily double. Increases in volatility accompany market declines. The VIX behavior at this juncture will reveal where the market wants to go.

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