We have been waiting for a bounce into the high forecast by the Hybrid Lindsay model and it looks to have come on Tuesday. Cycles warned that the high might come on the late side of the margin of error but internals now appear set-up to give us that rally early this week. Bears don’t have much to worry about, however, as the high is expected no later than Wednesday.
The VXV is a CBOE index similar to the VIX that projects volatility out three months instead of the VIX’s one month time frame. A simple ratio of the two indices produce excellent buy and sell signals (as seen below).
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