Advertisements

NorthmanTrader

Markets-Macro-Charts-Alerts-Technicals

Chart Chatter: $VIX

Welcome to Chart Chatter where we discuss various technical charts we find of interest. We cover indices, signals and stocks on different timeframes highlighting different technical techniques we use over time. We’ll focus on key observations we find relevant which readers may find of use for their own trading.

We do not present these charts as trade set-ups in this forum, but rather for discussion purposes. Feel free to add your thoughts in the comment section.

For more in-depth directional market analysis and trade set-ups please visit Services.

For other charts please visit Chart Chatter.


In September we talked about a spike set-up building in $VIX with risk of a breakout above the wedge trend line:

After weeks of chop and consolidation this spike has finally occurred breaking above the wedge pattern:

The context may be important signaling a shift in the volatility regime. Recall we had a descending edge building in 2017 that busted to the upside in early 2018. Since then a 2nd wedge was build on top of the previous one with the previous top trend line forming support throughout 2018.

This most recent spike has now broken above its upper trend line as well and found resistance at the top of the 2 hour RSI as $SPX has found support at its lower trend line:

As long as $SPX can hold its trend line support $VIX may retreat to retest its broken trend line. But be clear: This pattern has broken to the upside, signaling the calm of summer is over. And, as we saw in February, wedge breaks can be quite significant.


For the latest public analysis please visit NorthmanTrader. To subscribe to our market products please visit Services.

All content is provided as information only and should not be taken as investment or trading advice. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. For further details please refer to the disclaimer.

Advertisements

Categories: Chart Chatter

Discuss:

This site uses Akismet to reduce spam. Learn how your comment data is processed.