(this is the fourth in a series of five posts concerning the markets)
Starting with my June 2 post I wrote of my expectation for a near-term stock market advance despite what I viewed as highly problematical future conditions. I continue to maintain this view, albeit with the dangers discussed in the post of October 13, “Comments On The Next Crash“.
Before displaying charts of the S&P500, there are a couple of VIX charts that I find especially notable. The first, as shown below, is a chart that shows the 10-year Daily VIX chart, LOG scale. The 20-level continues to serve as an important demarcation, as seen when one compares the VIX in red to the S&P500 below. As this post is written, the VIX is at 19.85 and has been struggling to stay below this 20-level recently:
(click on images to enlarge charts)(charts courtesy of StockCharts.com)
This next chart is a weekly view of the VIX from 2003, on a LOG basis. I find this chart very notable. The VIX is shown in red, with the S&P500 shown at the bottom. I have added a few technical indicators to provide perspective. Perhaps most interesting is the MACD, which is depicted between the VIX and S&P500. The MACD shows a notable positive divergence (shown by the red line annotation) since mid-2009:
Now onto Part V, the S&P500…
A Special Note concerning our economic situation is found here
SPX at 1185.62 as this post is written