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Volatility – Daily Analysis

Amazing how statistics can forecast volatility. Let’s see what today’s VIX close says about tomorrow. We will review the candles and the corresponding technical indicators — essential context for anyone trading, entering, or hedging positions tomorrow.

CANDLES

Daily

Following last week’s statistical outlier, VIX is sliding lower exactly as forecasted. Today, VIX-tracking instruments marginally confirmed the Harami reversal, with VX even slipping below the 200 DMA. The move down looks healthy and remarkably well-structured.

If volatility drops tomorrow in a fashion similar to today, both VIX and VX could end up forming Three Black Crows — a true Christmas gift, potentially calming the VIX into the low teens and giving traders a much-needed holiday from volatility drama.

Happy Trading!