Monday, September 20, 2010

Nice Rally But ...

... VIX (bars) has been diverging from SPX (line) recently:

It often does so before market turns. Notice the other highlighted divergence.

This is more evidence that today's move up does not portend continuation in the near future.

However, I think the SPX will reach at least 1144 before it breaks to the down side. I will be a seller tomorrow at or above that level, after the Fed announcement.

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