For today's chart we've chosen to take a look at the CBOE Volatility Index because it is currently testing the support of an important moving average. As you can see from the chart below, today's 17.5% drop has sent the VIX below the support of the 50 DMA and now it is testing the combined support of the March/April highs and the 200 DMA. Traders would see a bounce off the nearby support ($13) as a sign of increased market volatility.



VIX_062906.gif




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