We saw some weakness in today's market after we got some disappointing retail numbers for the month of March... As you can see on the chart, the S&P pulled back to and closed on the trendline its been riding throughout this rally.
Even with the bad economic data and the poor performance of the market, the VIX fell marginally and remained below its previous level of support around 40. This means that investors are still more confident that the market won't break down than they have been in the past several months.
Today's pullback in the S&P and coinciding decrease in the VIX sets up for a great buying opportunity. If you've been following this blog, you know that the VIX is signaling that investors are likely to buy on dips right now and they are less likely to sell in a panic. Well, the market just gave us a dip today. We have a great entry point here around 840 and hopefully we can ride it on up to 875. Things may change once we hit resistance, but that's for another day.