The VIX’s structure with higher peaks and troughs became distorted after the FOMC meeting. Despite this being a positive development for the markets, it might be proper to stay attentive to the VIX for a couple more days to watch out for any potential rekindling of volatility.
Illustration 1.01 Illustration 1.01 shows the daily chart of VIX. The yellow arrow indicates a breakout below the lower bound of the broadening structure.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor or any other entity. Your own due diligence is highly advised before entering a trade.
Comment
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The VIX is popping up again, following the opening gap at the start of the month.
Comment
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The VIX rose more than 5% thus far today, following the release of disappointing inflation numbers in the United States.
Time to buy SQQQ…it’s been sideways for a while, and at 10/share it’s fairly cheap “insurance” to the downside.
Tradersweekly
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@Free_Loader, Yes, the market seems to be stagnating here. Options were also quite cheap recently.
vortexTradingSolutions
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so VIX going down ?
Tradersweekly
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@vortexTradingSolutions, Not necessarily down. I think probably sideways until profit-taking ensues in the market (which could happen soon) or until a surprise in economic data.
elenaec
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are you referring to the S&P 500 broker higher peaks or vix ? ty