VIX Tests Dual Monthly Support
Chris Kimble | Feb 27, 2015 03:37PM ET
Its been a good month for stocks with the S&P 500 up more than 5% -- one of the stronger February’s in a long time. As you might suspect, if the market is up, the 'fear' index is often down. For its part, the VIX index is down almost 35% this month.
The chart above looks at the VIX on a monthly closing basis. As you can see, the VIX was testing dual monthly support just before Friday's close. For those that shorted fear (owned (NASDAQ:XIV)) its been a good month.
What happens at this dual support could be very important per where the VIX is a month from now.
Full Disclosure…Premium Members own XIV and due to the pattern above, have established much tighter stops than normal.
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