VIX is uptrending, and the correction is nearly completed.
What to expect next: 1) VIX should develop the primary wave 1 hitting 50..60. 2) A correction to ~40 should ensue. 3) The real crash of all indices happens next, pushing VIX to ~150 in wave 3 and 5.
The rising VIX mirrors the increasingly instable equity and debt markets. Note the clear downtrends in Deutsche Bank (the most systemically dangerous bank) and in Treasuries.
I think Deutsche is heading to zero this time. The reporting is due this week, then a drop to 6..7, accompanies by VIX at 50..60. Then a brief correction, and then everything crashes in the most wild manner that the world has ever seen.
We are dealing with the final leg of risk-off move echoing back to as far as 2008 crash, and cross-asset correlations tend to increase towards the end of risk-off. Expect to see the Euro and other base pairs to fall sharply together with stocks and Crude. I maintain my targets of EUR below 0.9 and GBP below 1.10. SPX can try to approach 1000.
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