Charts I'm Watching: February 10, 2012

UPDATE:  3:55 PM

The NDX RSI trend line was broken on the daily chart.

VIX to 21.98 intra-day high, up almost 40% this week.

ORIGINAL POST:

VIX has broken out of its falling wedge.  We should see some sort of backtest, which will establish a right shoulder in an inverse H&S pattern, then a run up to 25+.  Note that each target which is fulfilled on an IHS completes another, larger IHS -- in a reverse waterfall of ever-increasing values.

I wrote about the same pattern last July, just prior to the market imploding [see: Do You Feel Lucky?]

But, an IH&S pattern on VIX wouldn't be worth much without a matching H&S pattern on SPX, though, right?  Here's a little one worth watching:

Of course, little ones can turn into bigger ones...

Which can turn into really, really big ones...

More later.

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The trend line from May 19, 2008 through May 2, 2011 and yesterday's close.  Note that it connects the wave 2 top in 2008 to what I believe is the wave 2 top in 2012 -- kindred spirits, if you will.  Thanks, again, to RS for pointing it out.

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AUDUSD charts, relating to discussion below...