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Tuesday, July 10, 2012
Should SPY Fall Below 133 Level, Expect VIX To Jump 23 level.
FVE has stopped declining and has begun to rise again and currently stands at 20.89 compared to VIX of 18.72. As long as SPY remains above 133 level, I believe investors would still believe that the current rebound would continue (hence VIX to remain below 20 level). Should 133 support level fail to hold, I would expect SPY to test its 200-day moving average again and expect VIX to climb to 23 level.