A very interesting weekly closure by volatility index from candles perspective. Let’s explore.
The weekly candle is another failed attempt to form a bottom. For five weeks in a row candles could not close above the mid point, 18.11, of the large red candle. There are a few other formations such as bullish Harami at play, but none of them has been confirmed yet.
The last three candles can be viewed as a Deliberation or Advance Block. A very long upper wick on the last candle signals that the formation is unlikely bullish and a pullback is expected. The length and depth of pullback is yet to be known.
The 50 DMA seems to be the strong resistance level for the index for the last month.
VIX has higher bearish odds on both weekly and daily frames.