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VIX VIX was clubbed on Thursday and again on Friday, even with potential systemic risk hanging over the markets.  After all, the market still appears awesome, doesn’t it?   As a result, it exceeded its “normal” decline of 30-50% back inside the Broadening formation by another 28%.  However, payback is coming in a very big way.  The entire Wave structure from… Continue reading

VIX

VIX topped on Monday and declined almost 42% through Friday, erasing the prior week’s gains.  What may have been strength turned into weakness as central banks unleashed massive amounts of liquidity into the markets   Apparently it was imperative to keep equities positive for the quarter end.

(Bloomberg)  The market convulsions of the last week have been a lesson in… Continue reading

VIX

VIX rallied above its weekly Cycle Top in a show of strength that started on Friday.  The Cycles Model suggests that the strength may last through next week, at a minimum.   Broadening formations (tops and bottoms) are often known as reversal patterns.

(ZeroHedge)  …According to Cheong, such sales could total as much as $150 billion should equity volatility persist… Continue reading

VIX VIX rallied above weekly Long-term support at 18.40 this week, closing above it.  This confirms the VIX buy/Equities sell signal.   Broadening formations (tops and bottoms) are often known as reversal patterns.

(ZeroHedge)  Amid turmoil in Chinese FX markets (which has not ended well in the past), the need to hedge against the looming Brexit vote, and rapidly fading… Continue reading

VIX

VIX rallied off the final low of a Broadening Bottom formation that is marked by successive higher highs and lower lows.  Aggressive traders often use a close above the mean value of this index to begin placing bearish trades in equities..  A daily close above the prior high at 17.65 confirms the VIX buy/Equities sell signal.  The Cycle low came on Tuesday.… Continue reading

VIX VIX appears to be in the final decline of a Broadening Bottom formation that is marked by successive higher highs and lower lows.  This move may be truncated, which means it may not exceed the prior 12.50 low.  In the meantime, it has given several false buy and sell signals.  The Cycles Model suggests a probable low today. Broadening formations (tops… Continue reading

VIX

VIX may be forming what is known as a Broadening Bottom formation that is marked by successive higher highs and lower lows.  If correct, this decline may be the last.  These formations are hard to identify, since they are rare and are not identifiable until the fifth and final point, likely to be beneath 12.50.  In the meantime, it has given several… Continue reading

VIXVIX broke above prior highs and challenged its weekly Intermediate-term resistance at 16.91 before falling back beneath weekly mid-Cycle support/resistance at 15.97.  This may indicate a potential buy signal (NYSE sell).  Further confirmation of the buy signal lies with a close above the mid-Cycle resistance and Intermediate-term resistance.

(Bloomberg)  Since its April low, the Chicago Board Options Exchange Volatility Index… Continue reading

VIX VIX bounced from its Pennant formation trendline closing above its Short-term support at 14.60.  This maintains a potential aggressive buy signal (NYSE sell signal). A breakout above the weekly high at 17.09 may confirm the signal.  Further confirmation lies above the mid-Cycle resistance at 15.87 and Intermediate-term resistance at 17.33.

(ZeroHedge)  Over the past two weeks we observed two… Continue reading

VIX

VIX challenged its weekly mid-Cycle resistance at 15.87, but pulled back and closed just above its Pennant formation.  This maintains a potential aggressive buy signal (NYSE sell signal). A breakout above the weekly high at 17.09 may confirm the signal.  Further confirmation lies at the double resistance at 18.03.

(SeeItMarket)   The Volatility Index (VIX) is followed by most active… Continue reading