|the empty suit|
I took a couple of weeks off to let the blown-out Bollinger Bands come in from their reaches, before we get back to the important and pressing business of calling tops in equities.
Besides the larger patterns, the key detail for us here is that we reach these extremes and react against them with great force. The danger is that we do not, and instead follow them up for a while. Take a look at some of the 3x leveraged ETF charts, and you can see long runs of this -- a very dangerous trap.
But it does open up some fun chaos into the end of the year and then the January FOMC. We first need to see a key reversal day, say this Thursday, where the SPX swings 30 or 40 handles, with UVXY rising 20% or more.
|Christmas crash scenario again|
The VIX threw a pin through its lower (oversold) BB but has not reacted yet. Ideally, it can close outside the band and then back inside, for a "VIX buy" (index sell) sign.
|VIX daily 12-02|