It’s been a while since I posted some $VIX charts. We talked about Volatility Rising before the big pop in early February. Ever after the $XIV ETF combusted $VIX appears to have been trading at more elevated levels.
Even the recent big rally has not calmed it down enough to retest breakout range despite many stocks making new highs. Perhaps it is reflective of the cracks appearing underneath the market I discussed earlier today in Tech Cracks.
Here’s the $VIX daily:
If anything, previous resistance may have turned into support. The breakout out of the 2 year descending wedge pattern remains uncontested so far despite the massive quarterly rejection candle we can observe at this stage:
Yet the monthly chart suggests a trend change has indeed taken place:
Still we have open gaps on both ends of the price spectrum and the current channel will demand resolution in regards to some of these gaps:
These gaps give both bulls and bears something to consider as one of them will fill first. Guess which one.
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Categories: Market Analysis