The only thing missing is the down red arrow which appeared on this chart back on Jun 10th, kicking off a 10% decline over the course of 5 trading sessions. An SPX decline now to below 4100 (currently 4115) should generate the red arrow and would be an excellent time to add to shorts, via Sep 16th Puts in SPY, QQQ, IWM or IYR. If he drop is steep enough, an Aug 19th expiration would be an attractive alternative. SPX - Short & Intermediate Term Volatility There will be no Wave 3 down without Volatility Buy Signals in VIX, VXX and UVXY. When they come they will be come in bunches and the moves up will be swift and should last weeks as opposed to days or hours. This VIX chart below has triggered a sole Buy on one model, but we are looking for swarms of new Buys before jumping in with an official recommendation. It will take a move above 23.50 to trigger another Buy and it will take that second Buy to get a call recommendation out of me.
