Tuesday, October 13, 2009

VIX making a floor? Cross-checking my view with Tony Caldaro's Objective Elliott Wave

I remember when Bill Luby of the VIX And More blogspot (in sites list at right) predicted a "plateau" coming for the VIX, which I really didn't see. But it sort of has done that. Meanwhile, equities have climbed - which can be seen as divergence worrisome for stocks. I tweeted that I don't really expect VIX to make a new low. Besides my Fibonacci view, I'm borrowing Tony Caldaros's OEW charts of VIX (thanks Tony! - see his site in the list too) - you can see he's not expecting a new VIX low either. He's got it marked as having already made its low. Now - futures are higher ... Can mean VIX will drop again, but it's just as likely (if not more so) that we'll see more divergence that helps make equities put in a cycle crest.

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