Volatility – Quick Update
In this unplanned update, we examine the volatility signals that are on the verge of being recorded and assess their potential implications for the broader market outlook.
CANDLES
Daily
MACD – Daily
Unless the VIX spikes in the final hour, volatility instruments are on track to confirm solid bearish reversal patterns on the daily frames. At the same time, the daily MACD is poised to record a bearish cross — similar signals were seen in October and December, both preceding mid- to long-term periods of declining volatility.
This setup increases the probability of the market stabilizing and potentially rallying from current levels. However, the more decisive confirmation of volatility momentum will likely come in the final two trading days of the month.
