Just last week I was waiting for capitulation in the sell-off to
be signalled by a close in the VIX above its upper BB and a close
in the SPX below its lower BB. Today is producing just the
opposite scenario. An SPX close this far outside the upper BB
is indeed rare. The only other time during this insane bull
market rally that the SPX closed this far outside upper BB is early
November. Reasonable sized corrections are usually the
result.
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vix
Posted by 8899 on 30th of Jun 2011 at 12:02 pm
vix right @ bottom of bollinger band & rsi = 31.11 right now...not a sell signal, but a yellow flag...
http://stockcharts.com/h-sc/ui
BB sell signal
Posted by kalinm on 30th of Jun 2011 at 12:21 pm
Just last week I was waiting for capitulation in the sell-off to be signalled by a close in the VIX above its upper BB and a close in the SPX below its lower BB. Today is producing just the opposite scenario. An SPX close this far outside the upper BB is indeed rare. The only other time during this insane bull market rally that the SPX closed this far outside upper BB is early November. Reasonable sized corrections are usually the result.