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$VIX Spike Peak Reversal?

By Lawrence G. McMillan

$VIX spiked up to almost 20 last Friday and then reversed back downward to nearly 17.  Currently, it stands at 17.82.  A spike peak reversal of that magnitude is at least a short-term buy signal for the stock market.  $VIX has probed to or above the 19 level four previous times since mid-April, and a tradable stock market rally has followed each time.  Will this be the case again this time, considering that there are other, more negative, indicators at work as well?  

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