COIL REVERSAL IN PROGRESS

I've talked about volatility coils in the past. Contrary to what most people believe the initial move out of a coil, even though it is usually pretty aggressive, usually tends to be a false move that is soon followed by a more powerful and durable move in the opposite direction.

We now have two coils that are in the process of reversing. Well actually one is reversing, the BKX has already reversed.

Along with the dollar collapsing this is just another sign that the August highs will most likely be taken out soon and I expect we will see a move to new highs before this daily cycle tops.