Global stock markets have been creating a series of lower highs since May of last year. The decline has caused the Fear Index (VIX) to push higher since the summer of 2015.
As you can see above, the VIX index has remained inside of falling channel (A) over the past 5-years, as it has created a series of lower highs and lower lows. The stock market decline, has pushed fear levels up and the VIX index is now testing dual resistance at (1) above.
Global stocks markets continue to test 5-year rising channels below:
Majority of the major stock indices around the world, continue to test 5-year weekly rising channels above. No doubt that support is support until broken.
Stock market bulls want “Fear to back off and support to hold above!” Investors haven't seen global correlation to this degree in a long time if ever.
If you are long and strong stocks, should global support happen to give way, the message would be to “Back Off” on long exposure, if you haven't already.
2106 marks my 36th year in this business. I humbly can say, I have never seen global market patterns like they are above in the 9-pack. These are important times, where “Opportunities” are huge friends. Doing the right thing and having your portfolios positioned correctly is very important right now.
