Yellen Dip Bought, Bulls Buoyed By Fed’s Focus On Labor Market

This negated the prior week’s constructive action in which VIX completed a potentially bullish 10- and 20-day crossover, but momentum was cut short at 20 to low-20s, which was lost mid-March. Last Tuesday, VIX (16.69) rallied to tick 21.85 but only to leave behind a long upper shadow by close. Intraday Thursday, it touched 20.60, but the gains were frittered away to form a gravestone doji.

VIX acts as if it wants to go lower. There is support at 15-16. The April 14 low is likely in play. A loss of this level exposes the index to risks of low teens. The S&P 500 should like that, should things evolve this way.

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