$VIX $VXX: We just provided our thoughts on S&P eminis, but let’s take a moment to review the CBOE Volatility Index (VIX). The VIX measure the fear/uncertainty in the market. Similar to S&P Futures, the VIX has been trading in a range since early August. Range support is 30, range resistance is 44. Today’s 5%+ upside move in the VIX took it above 44 range resistance, creating a potential bull flag confirmation. If this does turn out to be a bull flag, our target for the VIX is the 58-60 level…scary. This would obviously coincide with the 850 target in S&P eminis, and would make for some extremely attractive buy side opportunities. For now we are sitting still and watching the price action. If the VIX manages to push through recent resistance at 48 (yellow line), we are going to position very bearish!