The Cycle for SPX showed a bounce coming into the Orange arrow Cycle high. That has now occurred. Last week saw the strongest 1-week bounce in the last 2 years!! That is an impressive confirmation of the Cycle!
SPX has met the target for the Orange arrow high. A small dip is probable soon even though little more than some bouncing around prior to year-end is likely.
The Cycle shows a plunge into the Blue arrow Cycle low. The December low for SPX is very likely to be retested in January.
VIX is at the gap, and also near the trendline. Therefore, a bounce for VIX is likely soon. It might fill the gap first though.
It was an exaggerated spike in October, but it is apparent that the Second Yellow Arrow low is ahead. The August high for VIX was too flat. The spike in October fits the Cycle much better even though VIX overshot the blue arrows with surprising strength.
Expect some bounces, but VIX should see lower levels tested to form the Second Yellow Arrow low in the Cycle.
VIX made an exaggerated spike up in October once it broke above the red resistance. VIX is now back under the red resistance. Therefore, some short term downside for VIX is likely.
An important low for VIX is anticipated due in 1 week.
S&P Cycles were mixed in October. There were short term cycles in October that were quite negative, but some were surprisingly positive. The result was a very choppy month. In contrast for November, the Cycles turn extremely negative and remain consistently negative for S&P throughout the month.
The large scale VIX Cycle is heading much higher into December.