Volatility – Weekly Analysis

Today, I noted that several indices faced a choice between an ugly close and an even uglier version of it. VX chose the latter. In this weekly report, we examine how volatility is evolving, what it reveals about hidden market stress, and why it may be the key signal to watch before the broader market makes its next decisive move. CANDLES Daily/Weekly The weekly Volatility panel closed with a powerful cluster of bullish signals. Among the most notable were a strong bullish Inside Up for VX, a close just 0.5 basis points above the prior week’s high, decided in the final seconds, and 100/200 WMA bullish crosses in both the U.S. VIX and VX. While some signals still require confirmation, their sheer abundance leaves very little room for VIX bears next week. The daily frame remains less decisive. The first two instruments have technically confirmed bottoms, while the third and…