I've been watching the VIX for months, as to what direction the market is headed..
Remember, when the VIX is rising, the market is falling...
The bulls would all feel much better if the VIX was below 20-19 area..That would break the up trending chart...But, right now, it looks more like we are headed higher.. And from the looks of it, we could be in for more pain as the VIX looks like its headed for 27-30 area..
The divergence on the VIX is significant if we make it back to 27-30 area, as each time it hit 27-30 before, (AUG and NOV), the MACD has been falling..That just means the VIX is weaking as it approaches the 27-30 area...That's another way to say the bears are becoming more and more tired...
Check out the USO chart in my archives...Its telling on what happend next...
tb
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