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As it has for months, Fibonacci resistance levels came into play of late as the rally this past Friday stopped at the 61% level….AGAIN! Did yesterdays 240+ point decline prove that a TOP is in place? NO!!!
The VIX right now becomes key per if a TOP is in place…. due to three support lines coming into play at (2)…. If these support lines break, the TOP is not in and the market moves higher!
I remain of the opinion that the key to seeing that a MASSIVE TOP is in play and how to play it lies more in the CRX/Dollar combo! I discussed this combo almost 6 weeks ago….I would focus a ton more on this combo, much more so than the the 500 index!!! (see post here)