Rebel Traders – Analysis Without The Hype

Watching the S&P Volatility Index (VIX)

(click image for full size)

The VIX, having broken upwards from its bullish flag pattern, has pulled back and is nearing an area of support.

Taking a look at the VIX on an hourly chart scale brings up some interesting patterns. Notice the two short term channels (one is red, the other is green). And also a trend line (dashed line).

Volatility Index (VIX) - Hourly Chart Analysis

Tonight I concentrate on the volatility index (VIX) and the S&P 500 Futures.

Note: When I speak of a bullish pattern on the VIX is means a bearish result for the stock market. When the VIX goes up the stock market goes down.

Good morning to all…

A relatively quiet morning so far. S&P 500 futures are currently 883.50, the overnight low was 879.50 so this will be a point to watch today. If trading drops below the overnight lows selling pressure should increase. But be aware of the support levels I pointed out in my post on Friday.

A judge today will decide if Bernard Madoff will get to stay in his penthouse apartment or will go to jail. I don’t even know why this is being debated in the courts. He should have been put in jail on day one.

Seagate (STX) says they will layoff 10% of U.S. workforce

Tarragon (TARR), a real estate development company files Chapter 11 this morning

Amkor Technologies (AMKR) CUTS Q4 REV GUIDANCE TO -23% TO -25% Q/Q

Kennametal (KMT) CUTS Q2 EPS GUIDANCE TO $0.34 V $0.48E ($0.51-0.56 PRIOR); CUTTING COSTS, LAYING OFF 1,200 WORKERS (APPROX 9% OF WORKFORCE)

This mornings chart is the volatility index (VIX)

Volatility Index