Volatility – Quick Update

Volatility charts may be flashing an important signal. In this quick update, we break down the latest technical signals across key timeframes to determine whether volatility is truly rolling over, or quietly preparing for another surge that could add renewed pressure on the markets. CANDLES The daily close across the three VIX trackers was simply too strong to ignore. All three formed clean Bullish Engulfing candles. VIX, SP500 volatility, and VX pushed above the 8 EMA, while the broader technical backdrop was also strongly supportive across other indicators. The new candles, which opened a few hours ago, are red so far, almost as if the bears just realized that they not only failed today, but failed in style. Or perhaps the bulls were simply brilliant. Nevertheless, tomorrow is when volatility will truly test the odds. By my combined scale, today’s close carries an 85–90% probability of higher prices tomorrow and…