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Volatility – Daily Update

Volatility spiked sharply today, but the key question is whether the move was decisive enough to change direction, or merely another burst inside an unresolved structure.

In this quick update, we review the latest technical signals across key timeframes to determine whether volatility is truly rolling over or quietly preparing for another surge.

CANDLES

Indeed, VX opened yesterday with a huge gap up and confirmed the MACD bullish cross. However, volatility instruments calmed during the session and formed red candles. The short-term outlook is bearish, with lower lows carrying higher odds.

The picture is very different on the 2D, 5D, and 10D frames. All three closed today with strong bullish reversal formations, a development that clearly requires close monitoring. While tomorrow may still bring a lower low in volatility and a corresponding higher high for the market, Thursday’s close will be critically important. It should reveal whether momentum is beginning to shift on the 2D frame. Let’s be patient.