Volatility is smashing the bears in the teeth. Every time the market has a mini-selloff, it is no longer confirmed by a ramp up of the VIX. The SP500 is basically flat on the day here, but the VIX has now broken 45, trading down another -10% from where we signaled the bear mace sirens yesterday. My critical “Trend” line of support for the VIX was $50.14; now that we’ve cracked that and confirmed it, support becomes major resistance up at $50.81.
I would tread very carefully into your short positions – it takes a bear to know one. This is starting to get painful for the bears who are still looking for panic selloffs. The freak-outs aren’t coming as predictably as they used to. This remains an objective trader’s tape. The math is winning.