Volatility – Weekly Analysis

Today’s market sell-off did not come out of nowhere. Those who read the latest VIX alert had a clear warning that volatility was preparing to send a much louder message. In this weekly analysis, we examine how the Volatility Index closed across the key timeframes, what the latest signals reveal about hidden market stress, and why VIX may become one of the most important guides before the broader market makes its next decisive move. CANDLES Daily/Weekly In last week’s report, I highlighted an unusually low daily RSI on US VIX, a level not seen since 2023. VIX then took four days to build a classical divergence, followed by a burst on Friday. Textbook. The weekly message today was simple: we likely have at least one more week of increased volatility. The daily close was aligned with that view. As several VIX-tracking instruments reclaimed important long-term support levels, the bounce could…