VIX has moved above the 33.81 Fibonacci level we've been watching - so let's remain alert

VIX just moved above the 33.81 Fibonacci level we have been watching, so we'll need to remain alert. Equities have toyed with intraday levels that could provide support, but there are early indications of slippage happening simultaneously with VIX above 33.81. Next, we'll watch to see if VIX closes above this level. If so, then it's on to see whether we get followthrough to the upside in VIX.

I've written recently about whether we see a mild pullback, a deep pullback, or something more bearish. Personally, it seems prudent to position accordingly for increased volatility, and we'll see how it plays out - which of those scenarios are suggested by the market's reaction. This morning I read two articles, one talking about "stick a fork in the market, it's done" and the other saying the markets are due to go up in a new "supercycle." Well I'll admit I am very skeptical of the latter. But to remain unbiased, the best I can do is point to my recent posts about the important levels we're seeing where the market has been reacting to significant pivots and numbers in the DJIA, Dow Transports, Nasdaq 100, and now the VIX. From here, if the VIX closes above 33.81 and remains above it, the equity markets will have to prove themselves in my opinion. We'll review these issues more fully over the weekend.