We have a triple bottom that is being formed this year. I doubt that the 1760 bottom will hold, as investors usually get their nickers in a twist when support fails. Below that 1760 support their are all the sell orders being stacked up, to protect the bullish investor.
When the protective sell stops get triggered this turns the once-bullish investors, into stock bears instantly. Some of my updates will be on the shorter side and many of my postings will be erratic as I will take more downtime for the next 3 weeks or so.
The bullish action of the VIX tells us that fear is present in the markets and at this time I believe the VIX has far more room to move up. A few big gaps opened up in December which were quickly filled or closed off.
Not until I can count out 5 waves up in Minute degree, will we get close to another correction in the VIX. The little H&S patterns being setup also adds to the VIX bullish picture. A bullish VIX means bearish stocks so investors are not getting any Santa gifts just yet. I don’t have sympathy for investors that are still trying to milk out gains at an extreme record high. It’s like playing with a hot potato. If the VIX breaks out to a new record high this week remains to be seen, as the odds of a sustained VIX decline are getting less and less. It may take the rest of the week but the VIX should charge to new record highs.