The Coiling Market Just Got A Notch Closer To Exploding

Welcome back! Let’s do a brief market update. First of all, we opened up with the $VIX pushing up this morning. That led to some nice selling. Some of my mentorship students were very happy to see that. Ultimately, we did settle back on the day on that magic 11-12 area. Meanwhile, we have those rising support levels. As we’re going to look through this, it’s more of the same. We have the consolidation for a month and a half. We have negative divergence and declining market momentum. We have rising support levels that are catching up with the market. This is becoming a big apex. Right now we have President Donald Trump revamping TPP, which he’s pulling us out of. He’s revamping NAFTA. A lot of things that are currently being absorbed by the market. A lot of people are betting this is going to be the end of the market and a lot are betting this is going to be the beginning of a great bull market.

You see these wild accumulation and distribution bars back-to-back. We have rising support and negative divergence. What that leads to is a big fat coiled up market. We’re looking for a big explosion and it will be big. That’s the key thing we’re going to be looking at. We’re looking at the rising support levels below the sell signals. Meanwhile, we’re caught between that magic 11 and 12 area. If we want to get serious about selling, we have to get through this 12 level on the $VIX and push toward 13 and beyond. That can lead to some nice selling. We had rising support on the stock market and falling resistance on the $VIX. Now you can see the $VIX is doing the same thing. We had all that resistance going down but we have all this rising market energy underneath us. You can see it’s a complete inverse. It’s one big, fat coil up. Statistically, we generally don’t get down into the 10 area. Very seldom do we dip down toward the 11. If we bring this up to this weekly perspective. You can see we don’t get down to that 11 area. This is an important area on this market. That’s why this whole thing is coiled up. I keep reminding you to have this top of mind awareness. When this breaks, it’s going to break hard. There are going to be the people who are doing and the people on the sidelines wondering what just happened. I want you to be the doers and not the people who are caught off guard.

We’ll leave it at that for tonight. It’s so important to understand where we’re at right now. I hope I’ve made the case very strong for you. In the meantime, you got to understand where we’re at. This $VIX level is extremely important and in combination with the rising underlying market energy versus the rising support and falling momentum on the equities. These are colliding market structures. One side is going to lose and if the longs lose, they’re going to start selling off. If the shorts lose, then it can lead to some phenomenal spikes. I’m going to give you more info on this as we go into the week. Understand the big picture of why this is happening in the short-term.

Have a wonderful night!

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