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





Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.