5 Aug 2012

 Short term had a solid rebound on Friday with the indexes.  It is about a sharp turnaround as you will find on the above chart.  Just quickly glancing at it, there was one in March 2011 and a few around November 2011.  Still a bearish divergence between it and the Dow.

Medium term even got jolted upwards on Friday. On the bullish side, this most recent "low" was higher than both previous and the same can be said for the short term chart.

The VIX still has a little room to fall and remains subdued underneath the long term resistance trendline I pointed out on Friday.  This is bullish until its not.  Considering we don't have clear signals of being overbought or oversold, the current situation is risky, and generally, not worth large taking risks to either side.  I will let you know as soon as this bipolar market ends and gives some clarity.

"Even in a time of elephantine vanity and greed, one never has to look far to see the campfires of gentle people."
Garrison Keillor