{"id":30246,"date":"2015-08-26T21:51:33","date_gmt":"2015-08-27T04:51:33","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=30246"},"modified":"2015-08-26T21:56:58","modified_gmt":"2015-08-27T04:56:58","slug":"t2108-update-150826","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2015\/08\/26\/t2108-update-150826\/","title":{"rendered":"T2108 Update (August 26, 2015) – The VIX Remains Rangebound As Stock Buyers Finally Close Strongly"},"content":{"rendered":"

<\/code>(T2108 measures the percentage of stocks trading above their respective 40-day moving averages [DMAs]. It helps to identify extremes in market sentiment that are likely to reverse. To learn more about it, see my T2108 Resource Page<\/a>. You can follow real-time T2108 commentary<\/a> on twitter using the #T2108 hashtag. T2108-related trades and other trades are occasionally posted on twitter using the #120trade hashtag<\/a>. T2107 measures the percentage of stocks trading above their respective 200DMAs)<\/p>\n

T2108 Status<\/strong>: 9.7% (a 59% increase and first after six straight days of declines)
\nT2107 Status<\/strong>: 19.4%
\nVIX Status<\/strong>: 30.3
\nGeneral (Short-term) Trading Call<\/strong>: Bullish
\nActive T2108 periods<\/strong>: Day #4 below 20% (oversold), Day #5 under 30%, Day #28 under 40%, Day #68 under 50%, Day #85 under 60%, Day #284 under 70%<\/p>\n

Reference Charts<\/strong> (click for view of last 6 months from Stockcharts.com):
\nS&P 500<\/a> or SPY<\/a>
\nSDS<\/a> (ProShares UltraShort S&P500)
\nU.S. Dollar Index<\/a> (volatility index)
\nEEM<\/a> (iShares MSCI Emerging Markets)
\nVIX<\/a> (volatility index)
\nVXX<\/a> (iPath S&P 500 VIX Short-Term Futures ETN)
\nEWG<\/a> (iShares MSCI Germany Index Fund)
\nCAT<\/a> (Caterpillar).<\/p>\n

Commentary<\/strong>
\nThe buyers finally showed up and stood victorious at the close. T2108 rushed upward to 9.7% from 6.1%. (I forgot to note yesterday<\/a> that T2108 just missed the intra-day low of 5.9% from the historic March, 2009 low!). The S&P 500 (SPY) ended a 6-day losing streak and FINALLY closed above its lower-Bollinger Band (BB) for the first time in 5 days. This produced a 3.9% gain on the index.<\/p>\n


\n
\"Buyers<\/a>
Buyers finally take the baton from the persistent sellers on the S&P 500 (SPY)<\/figcaption><\/figure>
\n<\/center><\/p>\n

Surprisingly, the volatility index, the VIX, failed to close below the low of the last major upward surge. This bear\/bull line just happens to coincide with the intraday high from 2012’s market sell-off. <\/p>\n


\n
\"The<\/a>
The volatility index remains above the old 2012 intraday high and thus stays in the “dangerzone”<\/figcaption><\/figure>
\n<\/center><\/p>\n

Why do I think the VIX is still in the dangerzone? Check out these stats from VIX expert Bill Luby:<\/p>\n

<\/p>\n
\n

2nd day in a row that $VIX<\/a> is down and VIX futures are up $VX_F<\/a><\/p>\n

— Bill Luby (@VIXandMore) August 26, 2015<\/a><\/p><\/blockquote>\n