It never fails that everytime a Fed meeting rolls around the charts are at some type of important crossroads. The Vix has been dropping everyday since the 20th, and everytime it rises up to it’s trio of moving averages (10,20,50) it gets rejected. The Dow has been bouncing around, slowly grinding higher since then without much conviction.
The last time these two chart patterns converged there was a pretty explosive move in the Vix sending the Dow nearly to it’s 08′ lows.No matter what happens tomorrow given the market is already poised to open up over 125 points it’s going to be tricky to play for fear of whipsaws. I think the safer way to play tomorrow’s open is to wait for amateur hour to play out and see if it can hold it’s gains.
