August 5: Risk Levels Remain High

As the VIX moves down, the stock market moves up because the VIX moves opposite to the stock market.

Take a look at the chart of the VIX that we posted below and note that it has been moving down toward its support line, but has not reached it quite yet. As it moves down, the stock market moves up because the VIX moves opposite to the stock market.

Seeing that there was a breach on the most recent fan resistance line, there is a very strong possibility that it will be retested.

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Disclosure:

None.

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