Tell-Tale Sign today

Today, the futures are positive so I expect VIX to drop sharply, if it does not then remain defensive and any sign of weakness bail out.

The reason for this is VIX is stubbornly sticking above 32 levels and the VIX futures all the way upto December are showing a bearish tint.  Today both has to adjust with markets moving up, if they dont then we have another down wave on the horizon. 

Another Picture perfect short term rally setup..

Couple of days ago, we had a picture perfect setup and we have the same today for another short term rally. This rally can pull around 100 points on SPX. But as usual we take some profits on the way and then have stops to protect ourselves.

 For people who follow Larry Connors RSI system, there is that 2 day RSI also in the extreme level.

Ticks started ringing the bells too.. when we got the breakout above that hourly doji..

Remain in Cash in 401k and IRA acocunt. Let the volatility subside before you commit long term capital.