Bears will be watching the VIX closely today and they should be. Below is the monthly chart of the VIX .
Is it possible to build a case for major indicies with the VIX? Maybe. It's a difficult instrument to chart when using indicators. So instead, I like to use the line chart to cancel out the noise. Notice how comes out more cleanly.
Lastly, if you follow the URL below is an image of how the Put/Call ratio is now at its lowest point since early March. Sentiment in the market could be getting overly .
Short term, I could see a rise on the VIX . Bias: Bullish.
Silver or is it a Slug?
I've been reading a lot of articles on Gold and how Silver is a major laggard. It's true, Silver moves a hell of a lot slower than Gold . However, that could be changing soon. The chart below is the weekly view of Silver Futures .
The sell off in March in my view was the definition of a terminal shakeout. Price should not retest those lows. If it did it would be . There is strong support between 13.70 - 14 and dips are for buying.
On the chart I highlight the divergence between price and ( CMF ) during the sell off in March. Though, a technician should not use CMF by itself. Confirmation is required when a divergence like this is spotted. Here I am looking at to confirm the CMF . Silver may be a few weeks away and could potentially outperform Gold . I'll be keeping an eye on this one! Bias: Bullish.
Happy Friday everyone and good luck trading the employment numbers this morning!