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Volatility – Weekly Analysis

Volatility Technical Analysis launches our new Weekly Series, and today we have a substantial set of data to evaluate. Using a disciplined blend of technical indicators, candlestick analysis, Elliott Wave methodology, and classical chart patterns, this series is designed to isolate the signals that matter most and anticipate the shifts that shape market direction.

CANDLES

15-Day

Weekly

Daily

Today’s candle structure was decisively bullish across the daily, weekly, and 15D frames. Both the weekly and 15D closed above multiple former resistance levels that now act as support, reinforcing the constructive shift in trend. The daily trend remains firmly upward, and the weekly confirmed the 8/20 EMA bullish cross, adding further momentum confirmation.

The magnitude of this week’s advance was strong enough to marginally trigger an 8/20 EMA bullish cross on the monthly frame as well (chart below). The broader technical backdrop closely resembles the setup seen in February 2020. If the cross holds into the month-end close, it would technically mirror the early stages of the 2020 volatility expansion — a comparison that cannot be ignored.

On the shorter horizon, the SP500 VIX printed an Incomplete Dark Cloud Cover on the daily, which may lead to early weakness next week. However, given the strength of the higher-timeframe formations, any pullback is more likely to be corrective and limited rather than trend-reversing.