This is a series of weekly charts that indicate VXO relationship to SPX price. This short study is to see if there is any predictive patterns in the relationship. I have studied VXO for many years and have some personal view points. No one can predict with 100% accuracy what the market will do but experience can lead to some very good indications as to direction. Some explanation on each chart. Daily VXO patterns will be posted later.













Comments, thoughts and questions are welcomed,
mss

Scott, I find that often guys who follow their own charts get a real feel for them but when they show them to others (me) we don't get the same feel and miss the subtilities.
I see the little hook. So that means...?

RD,
The "hook" implies that enough internals changed to "maybe" change price direction more than a "dead cat" bounce.
Teaparty refers to it as a fish hook sometimes, meaning to chance it going the other way. In the charts I refer to retest and various lines, horz. & TL that give a clue as to chart distance therefore suggested price movement.
Sorry, the only chart that will update is the first one, but next weekend will post change of these.

Do not like the resizing at all. I spend too much time to produce usable charts for the boards use.
mss

Agree the SPX trendline gets retested but personally I was expecting the low to
be retested first with a lower low.

If the low is not retested by the Mar 10-13 cycle low then it is probably up
to the SPX trendline from then. Daily VIX can spring of it's lower band from
here but one more upward close in the mkt can get a vix close below the band for
the vix sell signal. There is only a few points for an up close yet stay trapped below
the triangle, it would not take much as vix is on the band.

Meanwhile with MCO trending almost through zero, summation at a trend level below zero,
21 days of advance behind us, MCO 5 and 10% trapped below zero with all the good news and stimulous they threw at it, if ambac news credibility problem or any other news surprise it would only take 3-5
days decline to retest the lows. Perhaps flat and dull all weak closes vix below it band for the
spring.

So I guess you are saying you don't like it?

Anyway, thanks for the explanation.