9 - Crash Sequence & Brexit Volatility vs Wave Patterns
The VIX has been classified in a Flat Structure with the Intermediate degrees (A)(B)(C) (orange) acting as the three-swings sequence required for this type of pattern.
Intermediate (A) (orange) reflects the previous spike witnessed in early February 2018, while Intermediate (B) (orange) reflects the attempt to correct that shock-wave, also the attempt for Indices across the world to reenter the complacency periods.
In early August 2018, after the complex structure on the down-side completed, the VIX initiated once again an alarming rise, which turned into an actual spike in volatility and the threatening return of the bears when it comes to stocks and indices.
The continuous rise of VIX throughout the second part of 2018 transcended into a questionable confirmation of a bearish cycle when it comes to global indices.
Intermediate (C) (orange) has been labeled in a five-swings sequence in its Minor sub-waves 12345 (red), and its sub-waves should exceed the end of Intermediate (A) (orange), if this swing were to complete the Flat Structure mentioned.
From a mathematical perspective, the 100% Fibonacci Extensions of Intermediates (A) & (B) (orange) could define a possible finish line for the fear season. This measurement has not been honored, hence the reason why VIX seems to be generating a dilemma.
The main question is whether or not the bearish sentiment has ended or if a crash sequence is barely getting started.
The previously mentioned Fibonacci measurements have not been honored, however, a five sequence could be visible. It is difficult to evaluate whether or not the VIX would continue the “fear spike” in an even more aggressive manner, or if the complacency period would be returning and the VIX would rapidly decrease towards the relief of Indices would-wide.
VIX does seem to be channeling with its series of spikes, hence the reason why a decisive swing could once again occur. A support in Minor 2 (red) could cause a serious spike and a bearish continuation for Indices, while a continuous decrease in this indicator could result in EU and US stock markets new all-time highs.
It could be indeed an epic moment, one which could be remembered.
Intermediate (A) (orange) reflects the previous spike witnessed in early February 2018, while Intermediate (B) (orange) reflects the attempt to correct that shock-wave, also the attempt for Indices across the world to reenter the complacency periods.
In early August 2018, after the complex structure on the down-side completed, the VIX initiated once again an alarming rise, which turned into an actual spike in volatility and the threatening return of the bears when it comes to stocks and indices.
The continuous rise of VIX throughout the second part of 2018 transcended into a questionable confirmation of a bearish cycle when it comes to global indices.
Intermediate (C) (orange) has been labeled in a five-swings sequence in its Minor sub-waves 12345 (red), and its sub-waves should exceed the end of Intermediate (A) (orange), if this swing were to complete the Flat Structure mentioned.
From a mathematical perspective, the 100% Fibonacci Extensions of Intermediates (A) & (B) (orange) could define a possible finish line for the fear season. This measurement has not been honored, hence the reason why VIX seems to be generating a dilemma.
The main question is whether or not the bearish sentiment has ended or if a crash sequence is barely getting started.
The previously mentioned Fibonacci measurements have not been honored, however, a five sequence could be visible. It is difficult to evaluate whether or not the VIX would continue the “fear spike” in an even more aggressive manner, or if the complacency period would be returning and the VIX would rapidly decrease towards the relief of Indices would-wide.
VIX does seem to be channeling with its series of spikes, hence the reason why a decisive swing could once again occur. A support in Minor 2 (red) could cause a serious spike and a bearish continuation for Indices, while a continuous decrease in this indicator could result in EU and US stock markets new all-time highs.
It could be indeed an epic moment, one which could be remembered.
