No "correction" in sight

After last week's big run-up in the market, many have been wondering when the big correction might be coming. I'm afraid I don't see it, not on the charts anyway. I simply do not see any sign of a reversal right now on the Dow daily chart, or even the weekly chart. In addition, the second week in February tends to be the best of the month, historically.

My one concern for tomorrow rests with the daily VIX which you see here. Note that right now it is at exactly the same level that has provided support the last three times we were here, just under 16. The only thing is that it still hasn't reached its lower Bollinger band yet. However, as you can see on January 27th, the VIX reversed course without ever reaching the lower BB. That said, the VIX remains in a primary downtrend going all the way back to last August. However, tomorrow will be key. There is little guidance from the futures tonight, with the ES up just 0.02% and the NQ down by the same amount at 1 AM EST.

So I'm going to leave the green swing trend arrow in place, but I'm not making any call for tomorrow. I'd like to see the market higher, but the market doesn't care what I like. There's no big economic news coming out tomorrow and Egypt seems to be calming down, so that's a good thing. My best guess is that if the VIX does go lower tomorrow, that only increases the chances that it will reverse on Tuesday, implying stocks lower then. We'll just have to wait and see on this one.