Been 4 days since my last post on the subject and what has the SPX done- down 3 points. Sideways movement it certainly is.
Here is the updated VIX chart :
Still above my green trendline. I will stick to my prognosis for a side-ways to an up market for the near term.
Since this blog is all about inter-market relationships, I thought that it would be prudent to support my view with a chart of the US Dollar.
As you know that USD and Stocks tend to move in opposite directions on the graph, I put up this chart of the co-relation :
And here are the trendlines I have been following on the USD index:
Ever since the descending TL gave way in Dec, USD has been moving upwards, but confined within the two TL’s you see in the pic.
The lower TL will have to give way for the upmove in stocks to continue.