Is a VIX breakout around the corner?

Today's chart shows the daily movement of the VIX versus the S&P 500. The VIX closed at 16.15 yesterday, and the VIX remains in positive territory.

However ... We have been commenting that: "investors should start paying attention to where the VIX is in relationship to fan line number 5 on today's chart. That resistance line and the support line intersect and form an apex that will be reached before the end of February.

These two lines indicate that the VIX will come under the "squeeze" of a converging resistance and support line. The result? A break out before the final apex is reached.

The declining lower/highs can't get much lower and still stay within the descending triangular formation. That suggests, that when the VIX does have its breakout, it will be to the upside and it will be a market negative. So, investors should keep their eyes on this VIX pattern from now until the end of February. (FYI: This chart is updated every day on our paid subscriber site.)