Lower Highs Portend a Change in Trend By Steven Smith About this article: Over the past few weeks, I've been focusing on charts, technical readings and sentiment indicators to try to get a grasp on a market that has been inscrutable. Until today, I was leaning towards a bullish bias in that the S&P 500 Index had made four higher lowers, which created an uptrend line. But I always had the caveat that until it could put in a higher high, the bullish case was in jeopardy. Just to clarify, the headline for today's midday post was inaccurate and somewhat misleading; the VIX did not decline, in fact it rose 11 to 21.65. And that will now shift the downtrend by putting a little hook in the chart. Remember, I subscribe to a change in direction as being more important than absolute levels and this rise neutralizes the bullish trend. And if you look at the term structure of... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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