outlook for 08-16-2011

The last two days has seen volatility pull back somewhat and volume decrease.  Not seeing the expected sell down (expecting 20-30 points) due to the bottoming of the 22TD and shorter cycles.  Still it could happen over the next two days.  May have to examine the positioning of these cycles and if they shifted somewhat due to recent market activity?  Today was the 3rd consecutive green day - this should have generated a VIX trend change signal (to up).  This trend change can last a few days to a few months. 

Here is the SPX (short cycles):

GL traders.  Do your own analysis