I keep writing about the VIX indicator of late because it is so essential to this market being able to continue its current rally. You have a monster level of support on the VIX at the 13 level and it goes all the way back to this time two years ago.
Right now it is currently trading right on or slightly below it depending on how particular you are about the trend-line. I consider the support being actively tested right now. Monday and Tuesday actually saw the VIX rally despite equities doing the same.
If support breaks, and we need it to be an obvious break, then I’m going to look at that as confirmation that equities can still march higher from here.
For now, a close below 13 today, and follow through tot he downside tomorrow, would be just what the doctor ordered.
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