Whew! That was close.
Posted by: rp on the 23rd of Dec 2011 at 02:17 pm
according to the VIX, all is well. uncle ben & friends saved the world from a global meltdown once again… or did they?
Here’s a weekly chart of the VIX. most traders are acutely aware of the chart pattern similarities off the top of the last bull market in 12/07 and off the last bull market (IMO) since 5/11. basically, chart pattern-wise, currently we are right about where we were in mid may ’08 (in the SPX and other primary indices).
the white horizontal lines mark those bull market tops. the blue horizontal line marks the peak of the comparable wave 2 rally that ending in mid june ’08. using the numbers 1,2, and 3, i noted the uncannily similarities in the price action of the VIX. you can see that have now falling from peak #2 to right around where peak #2 back in ’08 ended (#3). history doesn’t have to repeat itself but i thought these similarities were worth noting.
