• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 707 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 714 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 715 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 717 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

  1. Home
  2. Markets
  3. Other

Update: Keep an Eye on this Rare VIX Pattern ...

Update on last week's rare VIX pattern appearing again ...

Last week's comments are found first, followed by today's comments below ...

Last week's comments: This 12 month VIX chart shows a pattern that is fairly rare. This chart pattern has appeared a number of times in the past and has been pretty accurate. The pattern is where the VIX's support level is the bottom of a circle and the touch points follow the bottom of the circle. The difference I see is that the older patterns occurred over a longer period of time within the circle area.

In any case, this pattern should be watched because if it holds to the pattern, it will generate higher/lows on the VIX which will correlate with increasing fear levels, and increasing market risk. So, unless the VIX aborts this pattern within the next few days (by moving sideways or lower), then the market will start to increase its risk and fear levels. (Reference Note: This chart is updated every morning in Section 4, Chart 9c of the paid subscriber site.)

THIS week's comments: The chart below shows what happened since last week. From the chart above, you can see that the VIX was testing the bottom circular support last week. Now, when you look at today's chart, you can clearly see that the bottom support did hold with the VIX moving higher. (Remember that the VIX moves opposite to the market, so up movement is a negative.)

Do note that we have two important resistances coming up that could be a stopping point for the current short term rise. In any case, these comments remain valid ... Unless the VIX aborts this pattern soon (by moving sideways or lower), then the market will continue to increase its risk and fear levels. (Reference Note: This chart is updated every morning in Section 4, Chart 9c of the paid subscriber site.)

 

Back to homepage

Leave a comment

Leave a comment