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Thursday, May 7, 2009

VIX - buy signal produced / sell for stocks

VIX produced a buy for volatility with an outside reversal and a 13 count in a week 8. That confirms the various sell signals markets will be producing today for stocks.
The only tricky part is that we have an intermarket divergence that means NDX clearliy prudcedes a sell also on a weekly basis and but SPX is still clearly positive for the week in a 7 count hence we might need a few more sideways days before the real move starts but basically you got to be in the shorts and sell any strength going forward.

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