S&P500 vs VIX – Something doesn’t add up…


Today, the S&P500 closed at 2350, +0.6%, a new daily All Time High and VIX went up by 11%….Indeed, also up, showing divergence with the S&P500.

Now, if we combine this with the next Cycle Time Window of FEB 17-23, Bearish Divergence RSI S&P500, Bullish Divergence RSI VIX, Wedge Up Resistance area 2340-50, Wave E of an ABCDE pattern and Apple forming a doji, it might be wise to be careful with long positions and/or overweight short positions in anticipation of a change in trend.

Or you could simply wait for confirmation with a close < 2332.

VIX resistance @ 12.5 and 13.2 from trendlines.

Summary: although the trend is still up at any time frame, the risk for long positions increases and we should be alert for a High to be formed.

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