Wednesday, January 21, 2009

Is the bottom in?

Vix is signalling that we are very close to the bottom. Vix after spiking way above its 20 day BB pulled back across its 10 dma. That's bearish for Vix and bullish for equities.

As well, the Yen spiked up to its highs from January and then sold off, putting in a shooting star candle, and that's bearish for Yen and bullish for equities.

Treasuries continued to sell today, although possibly a bullish candle, but IEF's BB's are pointing down, which is bearish for IEF and bullish for equites.

So it look the bottom is in -- almost. To confirm it, we need Vix to break its 20 dma (singalling that there's an uptrend in equities) and we need the put/call ratio to roll over decisively.

For all that to happen, we need one more up day in equities -- maybe AAPL will seal the deal and confirm the bottom

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