Today's technical outlook: Is the VIX signaling an end to the bear market?

Filed under: Technical Analysis, Stocks to Buy

The struggle between the bulls and bears continued on Friday with what appeared to be a victory for the bears. And, long-term, they do have the edge since there is little doubt that every major index is still pointing south.

Friday's close at 8,001 on the Dow surely got the bulls' attention, as 8,000 appears to have some psychological importance to the investing public. But it has little technical significance.

The support line that has held since November (with the exception of the bear trap of Nov. 20 and Nov. 21) is actually at around 7,940. And the numbers that most technicians refer to as "the" market's support is at the zone between S&P 500 800 and 820.

For guidance at crucial moments, I prefer to check out the most reliable internal and sentiment indicators.

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Today's technical outlook: Is the VIX signaling an end to the bear market? originally appeared on BloggingStocks on Mon, 02 Feb 2009 09:30:00 EST. Please see our terms for use of feeds.

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