VIX signs of divergence on daily charts is just an early warning sign for equities

It may surprise you to know that the VIX is not making a new low with this extension of the equities markets rally. We're seeing SPX around the 940's today, and there is reason to believe it still wants to get to that 953 level (range 950/960) even if ChartsEdge's forecasts are right this week. Meaning, even if there is volatility along the way, it's reasonable to think that the Fibonacci retracements around 953 can be reached, now that equities have moved above the consolidation range.

The fact that the VIX is not "participating" by not digging lower, is a precursor to when the rally eventually gives out. Still play the rally on the charts, but don't assume that it's the beginning of a movement. Because it's possible that it's the end of a movement. That end of the rally moment may still take longer than bears want!

So bears need to respect it for the short term. But bulls should be cautious for what's around the corner.