When the SPX declined from October 2007 to July 2008, oil, silver, gold, the VIX & 30 year U.S. Treasury Bonds went up and the U.S. Dollar went down. The $VIX demonstrated a descending triangle with a breakout to the upside. These are reliable patterns once the breakout occurs. A similar triangle is now being formed for the $VIX. GLD & SLV demonstrated coils that broke out to the upside. Coils have a 50/50 chance of breaking out in either direction. $WTIC (oil) & DXDDX (2x US Dollar Bear ETF) both had rising wedges with unusual behavior, since only 18% of rising wedges break out to the upside. It is unclear whether this unusual pattern will be repeated.
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