Volatility – Daily Update
Has the VIX really formed a bottom—or is it too soon to call? In this exclusive update, we take a multi-angle look at the Volatility Index to uncover what’s brewing beneath the surface. This is a must-read for anyone who wants to stay a step ahead of the next major market move.
CANDLES
Daily
It was an interesting closure from a candlestick perspective. Despite the bounce, none of the instruments made a strong enough move to confirm a bottom. The VIX on the third chart was open on Friday and formed a solid green candle, but today’s candle fell short of providing that confirmation.
Most likely, we’ll see higher prices in the near term, but there’s still no certainty that a true bottom is in place—I’m still expecting at least one more lower low.
On the technical side, VIXY just formed a 50/100 DMA bearish cross, and the VIX is set to record a 50/200 DMA “death cross” tomorrow, both signaling better odds for a continued move downward.
The flag formation we discussed earlier remains valid. As expected, VX has been consolidating around the lower boundary, possibly forming a micro flag, and the bounce so far has been corrective in nature. There’s no change to the targets for now.
Happy Trading!
