Wednesday, April 10, 2013

Two Arguments That Support The Bears

First off, I am not bearish. The only reason why I am making this post is because bearish posts tend to get 2-3 times more traffic than the bullish posts that I make.

The chart below is the S&P 500 for the last 6 months on an hourly time frame. I have highlighted two observations. The first is the red trend line has not been broken through. The second point is the VIX has not made a lower low, as the S&P 500 has made a higher high. Look back in February as that had spelled trouble (shown on the chart).