Market broke though 1530 level and reached all time high at 1551. On the other hand, VIX’s unable to break through resistance, instead, is on its way down to its support level at $12. Is it a time to buy high sell higher, or buy low sell high? Let’s take a look at the possibilities.
The 100 years Dow Chart shows a possible pattern forming. Ever since the market recovers from the great depression, market tends to consolidate for about 200 months, before rallying for the next 200 months (estimate). We are near the consolidation period but not there yet. But the market can surprise us by starting the 200 months rally to a new high.
On the monthly chart (not being featured here), trend is still up, a bit of room before it reached an overly heated overbought over valued zone.
On the weekly chart, base on RSI, and Price envelop, it is at its overbought zone.
On the daily chart, base on RSI and price envelop, it is at its overbought zone.
VIX (fear index) weekly and daily are near its support level again.
Summary:
Mid term view:
Trend is still UP. 16 weeks into the up leg, and reaching new high.
Short term view:
Market doesn’t look like it wants to come down. It frustrates those who are afraid to miss further gains should the market goes higher. The top is often harder the catch than the bottom. So the question again, is it time to buy high sell higher on the big picture, or buy low and sell high on the VIX? How about doing both?
Cheers
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NOTE: All information provided “as is” for informational purposes only, not intended for trading purposes or advice.
