click to enlarge
VIX sell signals - when VIX touches the bottom Bollinger on the daily chart, with correspondence to SP500 below.
VIX has fired a rash of sell sigs in rapid succession recently, afaik this is historically unprecedented. If this sort of thing continues it lends credence to idea the Fed and PPT (President's Working Group, aka plunge protection team) have the market in "lock down" mode.
If they buy every dip immediately the market can only go sideways or up. A market that can only go sideways or up is going to go up.
Seems plausible to me they have the monetary firepower and trading mechanisms in place to put this market into a nearly straight line of pretty much any angle they choose. But even if so they have to allow for some volatility to keep up appearances, and it takes a black swan of considerable girth to move this market in the down direction substantially.
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