Respect or Ignore this “Bullish downside wick?”

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VIX finds itself around dual support, close to the bottom of its trading range and has created a heck of a long downside bullish wick at (2)!

Ignore or respect???

4 Comments

Chris Kimble on 03/26/2011 at 7:59 AM

Belsha….For what is worth, just a thought on some of the 2x and 3x inverse funds. They have tracking errors/slippage on a broad scale. With this in mind, I do not trust charting them and making decisions based upon their patterns. This is why I don’t share inverse charts on these ETF’s. Using them is one thing, decisions based upon their charts is another issue. Just a thought.
belsha on 03/26/2011 at 12:45 AM

A lot of bearish ETF’s seem to have created interesting patterns of late… like the inverse semiconductors, for exemple (SOXS, and especially TYP), sitting straight on 50MM and waiting to rebound…
TA on 03/25/2011 at 7:13 PM

Hello Chris, when you say bullish wick on VIX, you actually mean bearish for the equities? Thanks.
gary on 03/25/2011 at 3:32 PM

Chris,

I must be learning I drew Lline 1 about around noon today, but did not see the other one. Thanks for the help

Gary