TECHNICALS-VIX

Yesterday, I mentioned some of the market tells that would get me more bullish such as better acting financials, leadership from tech/semis, and better market internals. One I neglected to mention was the VIX/VXO tandem, and if these indexes quickly tank, I will have major doubts about the sustainability of any rally. A look at the chart of the VIX quickly shows that their was less fear yesterday than their was the last time the SPX was trading at the same levels. Currently the VIX/VXO tandem is trading at levels approximating 115% of their respective 10 day SMA's. A quick return to their 10 day SMA is going to indicate to me that this rally will be short lived and look for quick sellers at the SPX 1240 and 1260 resistance levels.