It is getting really interesting out there in financial markets. Every attempt of crash indicator VIX is blocked, stopped cold. A few days ago, it was clear that crash indicator VIX was trying to move higher, but the bulls pushed VIX lower again. For now, bulls are in control, it is really clear. The next attempt is likely January 4th or 15th, 2021, as per the reading(s) in our market forecasts.
The crash indicator VIX chart, daily timeframe, makes the point clear.
Please focus on point #2 on this chart. It shows the reading last Friday going into this week Monday. The bears were about to gain control over this market, and if they would do so it would have resulted in a pullback in indexes.
It didn’t happen.
What the (small) yellow rounded pattern suggests is that the next attempt for bears to push this market lower is due either on January 4th, 2021 or January 15th, 2021.
Between now and then, long positions can stay open, according to us. Adding new positions are justified only in markets with a good sector momentum.
