The VIX or Volatility Index looks like it has found some support in the short term. In reality, the VIX acts very much like a 30(ish) delta S&P 500 put. It is not exactly the fear index all the talking heads make it out to be. 98% of the time it is higher when the S&P is lower and vice versa on the S&P rally. The VIX seems to have bottomed at 13, trend line support, and has actually been a touch higher this week even with The S&P higher. You add to this the Doji reversal formed with last week’s VIX candle and the S&P hitting up against the top of the trend channel that has been in place since late 2011 and all signs point to a short term reversal. With that being said, the S&P looks to be ready for a pullback from the highs. Without any more fundamental news to push the S&P to new highs, we will probably see some profit taking in the near term. From here, the initial targets look like the VIX will shoot for 19.50 first and the S&P will try to break down to 1937.