I mentioned yesterday that there was an interesting chart developing on the VIX and RVX. Today I've included both charts for a quick review. Once again, they are both pressed up against resistance. This makes many days now where this line has been able to repel the implied volatility back down. Will it do it again? Only time will tell, but I am paying close attention. The only problem I have with this is that the actual SPX or RUT charts don't look so good. Ideally they would be sitting right at a nice point of support. Instead they've broken through the best points of support now and seem to be headed lower. What this might mean is that we will see the Bear just take a little breather before heading lower. We'll probably know tomorrow.
By the way, tomorrow I will pick up my daily updates on the RUT Condor. I have started the April position by putting the first Call and Put legs on, which is where I currently am. Tomorrow you may get the first update with an adjustment, as the Put side is getting very close… we'll see. Maybe the RVX resistance will hold and the pressure will be off. I would also like to get another leg on this week, at least on the Call side if not both, so I'm looking for that opening. At this point a single up day would be all the "bear market rally" I'm looking for.
Good Trading…
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