VIX - Volatility is set to skyrocket

With the FOMC only a week away, the volatility index is set to rise again. Our conclusion is based upon the premise that the upcoming rate hike will negatively impact the U.S. economy, which already started to manifest a return of selling pressure. In our opinion, this marks the resumption of the downtrend. We expect the selloff to accelerate in the coming weeks. Therefore, our short-term price target for VIX stays at 35 USD.

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DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Trade closed: target reached