Wedges are reversal patterns. A clear downward-sloping channel is interrupting a slight uptrend, so, on a breakout, we will take a bullish position. Conditional on high volume, our price target is half the height of the wedge, With a height of 7.70, the height of the breakout will be 3.85 above the upper trend line at the point of penetration. We are watching to see an upper breakout, and if there is, we will long the volatility of the S&P 500, represented by the VIX index.
Fundamentally, we do expect the VIX to increase, rising above its current year-to-date lows. Trade issues are still present, and are likely to revisit the mainstream conversation as time passes.