Thursday, July 15, 2010

Divergence on the $VIX

Notice the blue indicator with the black divergence lines I've drawn compared to price. It's called 'ECO' and I have no idea what it is or how it's computed. Does anybody out there know anything about this indicator? It's from a free chart site, copied here, and called Trixycharts.

Whatever it is, it suggests $VIX has a ways to climb, and by implication, the $SPX has a ways down to fall....

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