Something tells me that in order to have Ben Bernanke implement another round Quantitative easing, there should be some panic in the markets. We are still far far away from it. Last time I checked it took a VIX near 50 in order to have QE2 and Operation "Come on baby let's do the" Twist !
In other words, no panic , no QE !
I think the market can still crash down to around SPY $115/$110, which would then show a VIX near 50.
Interesting to see how correlated are the $VIX (Volatility Index) and UUP (US dollar ETF).
According to my SPY analysis earlier this morning, this is what I should expect regarding the US Dollar (UUP) and Volatility ($VIX) going forward in the next few months.
I'm still waiting for that VIX to spike up to the resistance line in before I start to get long this market. I know that we have been drifting lower in the past few days, were are getting oversold,but i'm still not sensing any ... fear. Until there is complacency, I'll be shorting the bounces.
