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Volatility – Quick Update

When I watched yesterday evening’s sharp drop in futures, I began to question the reliability of the volatility signals—each of which was telling a very different story, one I shared yesterday. In the end, the signals proved correct.

In this brief VIX update, we review the latest developments and assess the probabilities heading into tomorrow.

CANDLES

Daily

All four VIX-tracking instruments closed today with solid bearish continuation candles, effectively confirming yesterday’s reversal. Bearish momentum is increasing, and the weekly frames are on track for bearish closes.

Happy Trading!