As discussed, we've been watching $VIX closely in case of reversal, and yesterday saw the 5-day RSI hook up above the 30-line to flash one of the Connors $VIX Reversal signals. We never use it as a setup, so what we'll be doing is to watch for breakout conditions after inaction on an inside day on the S&P 500 index yesterday.
As discussed in the Stock Index Strategy, loads of traders will be watching for the move too, because it's been in a congestion pattern for almost two months. Remember, it is often the case that IF yesterday's high or low is not taken out decisively and it holds on an intraday test, THEN price action goes directly to the opposite end of yesterday's price range to test revolve there too before the real breakout takes place.
No signals from the $VXN today.
04.03.03 08:50 #