DISAPPOINTMENT

The VXO went straight down today after opening at 11.4 it closed at near the low of the day at 10.43 which is about 8% below its 10 day SMA. We know from past history that the markets have problems making northbound progress when the VIX/VXO indexes are more than 5% below their 10 day SMA's. The 2 day RSI on the VXO is also at the very oversold level of 12. This is disappointing news as the VXO should have risen today as the markets sold went lower.