VIX made a swing low at Long-term support at 18.21 on Friday morning, then rose to challenge Intermediate-term resistance at 20.27. While the VIX is on a long-term sell signal, this level would be considered “neutral.” However, the buy signal (NYSE sell signal) may be confirmed with a rise above the Short-term resistance at 22.66.  A breakout above the neckline suggests a very robust follow-through rally that may last up to a month.

(ZeroHedge) VIX mini ‘flash-crashed’ this morning to test its 200-day-moving-average to the lowest level since Dec 31st 2015. For now, it appears to have marked a low…

(Bloomberg) Hedge funds and investors in exchange-traded notes are plowing money into bets that pay off should last week’s soothing of U.S. stock market turbulence prove temporary.

SPX makes a 50% retracement. 

The SPX made a 50% retracement of the decline from November 3 to February 11. This is a normal retracement pattern and anticipated by many market technicians. The January bottom support at 1812.29 was broken and an open invitation for a retest once this rally fails. The Cycles Model suggests the decline may start immediately.

(ZeroHedge) With the S&P retesting its stubborn support level of 1,812 as recently as a week ago, many have continued to predict that failures to breach said level would result in violent bear market rallies, most recently JPM which however “should be faded”, as it noted three weeks ago, looked at earnings and said that “16x and $120 create a firm ceiling at ~1950 and thus moves toward that level should be faded.”

Others such as BofA’s Michael Harnett, and overnight Citi, went so far as saying that unless the G-20 comes out with a big stimulative surprise, it would open the path for the market’s next leg lower, below this critical support.

NDX ends week at Short-term resistance.

NDX challenged weekly Short-term resistance at 4228.83 this week, closing just above it. Its retracement was a weaker 46% of it decline. Should selling resume, NDX may decline to 3000 or lower.

(LATimes) Even in the volatile world of technology stocks, it was a stunning moment for investors.

Shares of the tech companies LinkedIn Corp. (LNKD) and Tableau Software Inc. (DATA) dropped like an anvil from a cliff early this month after the firms reported disappointing growth forecasts. Their stocks plunged more than 40% in a single day and sparked a sell-off in other tech stocks as well.

“I don’t remember seeing a reaction as violent as that since the dot-com bubble burst” in 2000, said Pat O’Hare, chief market analyst at Briefing.com, an investment research site.

High Yield Bond Index may have completed its rally.

The High Yield Index made some wide-ranging moves this week, but could not overcome its November 3 high. MUT is no longer on a sell signal, but may resume that status next week by declining beneath the trendline and mid-Cycle support at 139.00.

(ETFTrends) As equities markets bounce back and oil prices edge higher from a 13-year low, the rising risk-on sentiment has brought fixed-income investors back to the high-yield bond exchange traded funds.

Over the past week, the SPDR Barclays High Yield Bond ETF (NYSEArca: JNK)attracted $340.2 million in net inflows, iShares iBoxx $ High Yield Corporate Bond ETF (NYSEArca: HYG) added $945.4 million and iShares iBoxx $ Investment Grade Corporate Bond ETF (NYSEArca: LQD) saw $387.5 million in inflows, according to ETF.com.

After underperforming government bonds during the risk-off environment, corporate debt is finally starting to outpace Treasuries. Over the past week, HYG rose 1.1%, JNK gained 1.3% and LQD increased 1.3%, whereas the iShares 3-7 Year Treasury Bond ETF (NYSEArca: IEI) was up 0.2%.

The Euro pulls back to Intermediate-term support.

The Euro pulled back even further to Intermediate-term support at 108.99.  The Cycles Model suggests a period of strength beginning imminently and lasting approximately three weeks with the minimum Pennant target in reach.