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Volatility – Alert

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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 + TA

Volatility instruments pulled back today, but this is likely a tactical retreat, focused on normalizing technicals after last Friday’s strong advance. All short- and mid-term support levels remain intact.

VIX/SPX formed strong bullish candles on the 2D, 3D, 6D, and 12D frames. The momentum has definitely elevated to an alarming status.

While one more consolidating day tomorrow is possible, the chances for a bullish continuation on Wednesday are quite high.