Monday, September 21, 2020

Still Setting Up For Next Larger Leg Down

Once the down leg has hit - either wave 3 or 5 and a retrace completes, we should be off to the down-side races again. If a new all-time-high ensues instead of a retrace then a recalculation will be forthcoming. Daily VIX has penetrated up beyond it's 200ma [29.0] so that could be significant. VIX volatility (VVIX) looks to have bottomed in the last session breaking the previous low from June 1 2020 and currently bouncing above 2 other lows subsequent to June 1 [intra-day 12:00 noon]. We would like to see the daily VIX 50ma begin to close the gap on the 200ma from here as that would support the anticipated scenario that could be developing.

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Updated chart 1:20pm EST. [TARGET ZONE 50]





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