Feb 27th - Non-confirmation, and Update on the VIX movements today.

By Ryan McGuire
for Gold Avalanche

New high in the Dow not confirmed by the Transportation average = not good. Let's give it a few days to confirm.

As per my last post - I forgot that the Vix and the ETF (or ETN) that tracks it don't work the same way. Namely,  NYSE:VXX reflects the movements of the VIX for the S&P500 on a daily closing basis. So, the ETF didn't reflect the huge intra-day spike in volatility. Too bad!!

I'm not sure what that intra-day spike means, but I am interested in researching it's relationship with sentiment and market direction (if that, in fact, is the right direction to take research on the topic). Perhaps it's a function of algo-traders, but I'm not going to speculate further since I might wind up basing a lot of typing on a potentially false premise.

Happy Investing.
Ryan