One Down...

It took six sessions, but SPX is finally back above the neckline we laid out two weeks ago. For the bulls, this was an important achievement. It not only gives them a new, higher level of vital support than the SMA200. But, it gives them a specific upside target which.

Note that IH&S upside targets have eventually been achieved nearly every single time over the past 9 years. It’s important to note, however, that the patterns themselves have sometimes busted before the price objective was achieved.

VIX has reached our next downside target right on schedule. As we’ve discussed, the path was almost a certainty given the difficulty USDJPY and CL face in continuing their bullish ways. The algos aren’t picky. VIX’s (unnaturally orderly) 32% collapse over the past 7 sessions has worked just fine.While this is an important milestone, there are two more important ones to achieve before we can say the bulls are in the clear.