Volatility Remains Somewhat Bullish

I discovered this chart through a unique feature that Stockcharts offers called “Voyeur”. I think it does a good job of showing you at a glance whether the markets are bullish/bearish from a volatility perspective.

Essentially every 15 seconds it shows you another chart that a member just looked at, complete with annotations. It's a good way to get ideas on how to use different indicators or charts. I had never seen this chart below and have been watching how the SPX behaves when the One/Volatility Index is above/below 20 ema. It seems that when it's above it the markets are in “bull” mode and vice versa for the bear side. In theory a “touch” of the moving average could be an opportunity to open new longs with decent reward/risk.

Given my timing signal has switched to a more cautious stance it'll be interesting to see if this mornings weakness is a time to buy because right now you're guess is as good as mine.