$VIX Weekly

An important crossover was avoided in the volatility weekly chart with the impact of the U.S. elections. At one time, the rally in stocks would have meant that the democrat was supported by the markets, now that markets are at new highs, the republican elect is obviously the chosen one.

At one time cheerleading for a rout was in order which has become cheering the new highs, forgetting entirely that a substantial correction was in order. We saw the correction, very short lived, and it remains to be seen how this all plays out.

I prefer to believe that the moving average crossover is correct for the moment, on the weekly chart, even though we've turned away. The daily chart in the S&P shows multiple moving average crossovers of the 13-day EMA over the 34 and 89 day EMAs, which shoukd be asking for a follow-up in the weekly chart of the S&P.

Notable to the discusion would be the $TED Spread gapped down and needs to be closed before anything else. Stock markets have retest the highs(already accomplished in the Dow) before turning again. Yield curves continue to steepen everywhere, while short-term U.S. rates come close to the target rate anticipated by the Federal Reserve come December.

All in all, this is extraordinarily bad for gold prices, unless bond markets reverse again and rates decline against inflation.

In discussing the peaks in volatility you can argue again that volatility aught to gain precedence, should a repeat pattern be seen, so I added some lines.

In amy event, there would have to be a second moving average crossover.

http://schrts.co/DGY94J

-F6