We have volatility index finally got out of the decending wedge which is bullish formation on the index which in turn is bearish for the equity markets.
We have longer and short term charts here :
The longer term below clearly shows that breaking of cup and handle which happen when lehman failure back in march had triggered Oct seller off on markets and now its cooled off after that massive move and came to near support for another move up
(click for sharper view)
Here is another shorter term chart shows that we are decending wedge pattern emerged and breaking out and test the wedge is clear sign that it wants to go higher which means markets will go triple digit up and down days coming, And historically Sept-Oct we have massive sell offs months.So are we expecting the same here.
(Click for sharper view)
