Wednesday, April 9, 2008
VIX & Vixen Both Still Intact
As noted in the previous post, the VIX was on the verge of confirming the bulls' hopes for a strong rally with some staying power. But a funny thing happened; it reversed (hammered) after briefly setting a new low from the February low. A chart of the VXN was posted this morning on the COW and here again we see a sentiment indicator that begs caution. The major media have swung so hard from doom & gloom to some sort of 'In Greensp... err, Benny we trust' fantasy that in some corners a strong and enduring rally is all but given. As has been the case, I do not discount that possibility but again repeat that the VIX & Vixen are not broken and so the bulls do not have the go signal yet in my opinion.