194 at the close. The VIX reached a high of 32.89.
A high value for VIX means there are a lot of fear in the market.
If you look back on the historical value for VIX, you can see that we
experienced similar high volatility back in 2001 and 2002.
The trend for the Dow is still to the down side.
The index is now firmly below its 200 day moving average (Green Line) and 50 day moving average (Red Line).
The bulls did try to take the index above the 50 day moving average but it
hit the resistance on 28 Feb 08 and has continued to move lower.
Usually when VIX reaches a high value, a reversal is near. This time round, the catalyst may come from the US Federal Reserve. Let's see whether Mr Ben Bernake is able to help this market turn around.
No comments:
Post a Comment