VIX is getting ready to roll

The VIX failed to close the opening gap it formed yesterday, which is slightly concerning news (especially if also considering an ongoing bloodbath in the Asian market and the potential spillover effect into Western equity markets). As a result, we are closely monitoring the resistance at $14.49; a breakout above it will bolster the bullish case for the VIX, while the gap's closing will suggest otherwise.

Technical analysis gauge
Daily time frame = Slightly bullish
Weekly time frame = Neutral
*The gauge does not necessarily indicate where the market will head. Instead, it reflects the constellation of RSI, MACD, Stochastic, DM+-, ADX, and moving averages.

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. Therefore, your own due diligence is highly advised before entering a trade.

Comment:

Today, the VIX formed another opening gap, which has not been closed so far.

Illustration 1.01

Illustration 1.01 shows the hourly chart of the VIX. Yellow arrows highlight opening gaps in the past two days.

Comment:

Illustration 1.02

The picture shows the VIX's daily graph. The yellow arrow indicates an invalidation of the bullish breakout above the resistance.

Comment:

The VIX has been trading below $15.50 for 92 trading sessions, which is the longest period since late 2017/early 2018 (just shortly before the massive spike in volatility and market selloff).

Illustration 1.03

Illustration 1.03 displays the daily graph of the VIX. The yellow arrow indicates yesterday’s opening gap.