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We have spotted a monthly Bump and Run Reversal bottom in the VIX. The bump-and-run reversal bottom is a chart pattern that is a surprisingly good performer in both bull and bear markets. It has a very low break even failure rate and high average rise after the breakout. Discovered by Thomas Bulkowski in 1999. The current state of the pattern is the third lead-in printing above the supply line. What this tells us is that a reversal or a return to volatility is nearing.

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Looking at fundamentals verse SPX500 is extremely wide. Eventually the market will revert after the central bank illusion.

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How is the central bank illusion produced? Well it costs $180 billion per month to maintain the stagnating global economy.

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Here is a shocker. FY’16 GDP estimates crash.

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Summary: Volatility is coming back and it’s due to central bank distortion pushing up assets distorting fundamentals. There will always be a reversion and the further the way the more dramatic it will be.