Yesterday I shared that a 50/50 challenge was at hand and at least a short-term rally in the S&P 500 should take place. Why was a rally due? The VIX was almost at the 50 level and the S&P 500 was at the 50% retracement level (see post here)
Below is an update to yesterdays 50/50 post…
CLICK ON CHART TO ENLARGE
Just because Gold is down today, that doesn’t represent a new trend, nor does a rally today in the 500 index off the key levels today represent a new trend…..yet new trends have to start somewhere and higher lows is something to keep an eye on!
One does have to respect that even though the 500 index has been a REAL DOG performance wise this month, should the 500 index break above and the VIX break below line (3), the ole Dog will most likely act a good deal STRONGER for a while!!! From a “Power of the Pattern” perspective, I would want to own an upside breakout with a trailing stop!