VIX has been trading within a Channel Down since March 2020, which is natural as the huge volatility spike following the COVID outbreak as a global pandemic has been normalized gradually.
Every bottom on this Channel Down was in the form of a Cup and a spike to the Lower Highs trend-line followed. Every time that was translated into a strong correction on the stock markets.
Right now it is the first time (on the 1D time-frame) that the price broke below this Cup. A break below the Green Line will indicate in my opinion a strong stock market rally for Q3. On the other hand a break above the Red Line may cause a medium-term correction on stocks within -3% and -6%.
What do you think will happen?
** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. **
My two cents...all the stocks I'm watching are peaking imo and have divergences on monthly, weekly or daily TF. Some have multiple TF divergences. VIX should rise up pretty good as I think the markets will really try to push higher but won't be able to. We are about to see a big correction imo
The trigger? jobs report, inflation reports out of Germany, France just entered a recession...spin the wheel.
Attrition_
⋅
The PCC (Put to Calls Ratio) is way too high. Market makers never pull the rug when everyone has insurance. Choppy or up for a bit would be my guess for now.
alextpham
⋅
Excellent observation. VIX has always been one of my top indicator, along with the major indices & oil & gold.
The trigger? jobs report, inflation reports out of Germany, France just entered a recession...spin the wheel.