VIX Still in Downtrend

01/22/2010 1:57 pm EST

Focus: OPTIONS

Thomas Aspray

, Professional Trader & Analyst

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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.

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