CLICK ON CHART TO ENLARGE
The decline off of the mid September highs broke support line (1). The seasonal Thanksgiving rally last week took the 500 to the underside of this support line, now represented as resistance at (2).
At the same time this rally took place, the VIX index stands at 15. Since 2010 when the VIX was at 15, was the market closer to key highs or lows?
With the 500 testing the underside of resistance for the first time since 2009 and the VIX setting at 15, the upcoming price action at (2) becomes very important!