The ramp up in futures was rather spectacular this morning with a large gap up in the morning, followed by weakness throughout the day. A possible 1-2 formation formed, but its still too early to tell if this is the top. Ok, not really the VIX spiked out of the bottom of the BB.
The VIX closed outside the bottom of the BB. I fully expected today for the VIX to retrace back into the wedge, but the ramp up in stocks was far greater than I expected. Can you believe the VIX is the in the TEENS? No need to hedge your longs...this market is going up forever! :-PI am underwater in my small put position of feb 112 on SPY. But tomorrow I will be increasing that position. Again I will not take a larger position till I get a signal from the BPSPX:CPC combined with at least 5 waves down from the top.
Further evidence that we might have turned:
A bit of a head and shoulders pattern has formed in bonds. The head seems to have formed and the right shoulders is forming on declining volume.
