The Fear Triangle appears Complete

Grim Reaper.jpg

The market seemed to forget about Greece last week, but one has to wonder.  Are the constant delays in negotiations just stalling tactics to prepare for a Greek default?

The TVIX chart has formed a triangle.  The measured target of a triangle breakout is $23.35.  This week watch for a potential breakout of the triangle about February 23rd with timing to the target around February 27th.

TVIX has put in higher lows since early February even with the S&P 500 grinding slightly higher during the same time period.  Volume in TVIX has also been expanding rapidly.   

and one should also look at the downside break with a target of 13 or so, you bear....

Fair enough.  However, the higher lows for TVIX in february is a red flag diverging with the S&P.  This implies an upside breakout is much more likely.  We'll find out shortly.