VIX has been in a support zone between 15 to 18 during last 3 years. SPX peaked at these levels. The fact that both SPX and VIX closed red is troubling and maybe the smart money knows something that we do not know. We bounced off 1348/49 level and closed above 1354 swing low support. We retraced 38fib so it satisfies wave 4, but alternation uptrend rule on EW maybe possible to chop between 23 and 50 fib (1344) before finishing wave 5. SPX 1346 is the next swing low support price and it is also where current trend average closed on Friday. If we retrace deeper 1340 is a big swing low support price.
Below charts may indicate that smart money is not bought into the downside and maybe holding long. Disappointing job numbers on Friday and previous contracting economic news possibly leave QE3 open.
Important Gann Cycle Date is 7/13-7/16.
NYMO
VIX
NYAD
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