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This technical setup was for long $VIX and was tracked publicly.
On July 24, when the $VIX was trading at 12 I published an article calling for a $VIXplosion, meaning a coming spike in volatility of size.
In the article I published, among other charts, this specific $VIX chart:
And I outlined the 24/25 gap fill target highlighted in the chart:
“While not all index gaps fill, not the same can be said for $VIX: All $VIX gaps fill eventually.
And there is an open gap in the 24/25 area courtesy Jerome Powell when he delivered his ‘flexible’ speech in early January leading to the renewed compression phase we’re in now, a clearly defined descending wedge pattern again.”
I then tracked this chart on twitter as the pattern was building:
Note it tagged the trend line again and then rejected one more time as part of the pattern build phase:
It was then on July 26 when I reiterated the pattern and 24/25 target on CNBC when $VIX was again trading at 12::
We then saw the target getting hit precisely in the days that followed:
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Categories: Technical SetUps