Weekly Chart Of VIX Gives Bullish Clues For Stock Market

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Weekly Chart Of VIX Gives Bullish Clues For Stock Market

By J Clinton Hill on January 2, 2009 | More Posts By J Clinton Hill | Author's Website

On Wednesday the VIX (^VIX) (Volatility Index) finally broke below 40. While the indicator remains at a historically high level, technical analysis of its weekly chart (see below) shows a potential setup for future bullish action in stocks.

What would really help the intermediate outlook for equities would be a break below the 30-35 support levels. If this were to occur, then the probability of a 20-handle increases as there is not much support until @ 27 and @ 22 price areas.

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