vix

The VIX indicator has been very interesting to watch of late. 

First, you have a text book double bottom that has formed. But it hasn’t confirmed the pattern in the form of a breakout. 

That break out level is around 16.30/40 and should it close above that level, I think it is very possible that continued downside will play out for the market. 

The last three days price has been rejected at this level on the VIX. Today, it is challenging it again, but so far it hasn’t had what I would call a clean break of it, and ultimately it all comes down to whether it can close above that price level anyways. So stay tuned. 

At the same time, watch the lows on SPX from last week. Right now SPX is testing that level and while it has traded below it intraday today, it hasn’t managed to hold it. 

Still lots to figure out between now and the close and what this market decides it ultimately wants to do. 

Here’s the VIX:

volatility trying to break out 

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