VIX Still in Downtrend
01/22/2010 1:57 pm EST
Despite the heavy selling this week, and even with today’s intraday rise of 0.50 by midday, the VIX is still in a well-established downtrend. Though it could still rise further, there are no real signs yet that a bottom is forming with the ten- and 20-period MAs negative and still declining. This suggests that the drop in the stock market is just a correction within the intermediate-term uptrend.