VVIX is the mother of volatility. It's already elevated, the initial shock and awe stage is done. SPX has to go down from here (which equates to more shock, awe and disbelief) for VVIX to rise substantially and for VIX futures & VIX options to behave accordingly.
Expecting a pullback (similar to my last $VIX chart) before rocketing much higher (March levels)....
the sell COMES. None of this rally has quelled the underlying fear in the market. It does not have the power, nor the sentiment that the majority of traders think it does. After the steady grind over 3750, SPX has been diminishing in strength as it goes up. Volume has silently tapered off and liquidity is near empty after the last push today. I am now beginning...
The channel lines fit perfectly. It also appears that the market's bullish impulse waves actually ended in early 2019.
Does any of this mean anything? We shall see.
While there has been a continuous rise in stocks to ATH almost daily, the power of volatility has been brewing. There is very little upside remaining in SPX (ES1!) IMO. the risk for 1%-4% more may not be worth the 10%-20% correction that is coming very soon. There will be a limit down day very soon, that is not an opinion but a very very likely situation. many...
Well that OG Falling Wedge played out nicely B).
I've updated it here to line up this most recent spike. We're at the bottom of the main 2Y upchannel containing the bulk of the Price Action (yellow) so could very easily bounce back up from here.
Currently we still seem to be within the FW structure heading toward the tip for a bigger breakout. We could breakout...
Well well well, in the last 6 weeks we have seen the break down of this wedge and a push towards the initial target, which was met by a vicious suppression of volatility into the US Election. Now the second target has been labeled and mapped out. I have labeled those zones as key pivots should we see Volatility explode over the next 6 weeks into the Presidential...
And also the Feb gapup downtrend S/R (magenta). The horizontal S/R below it (green).
Another reason VVIX has limited downside but massive upside, also coming up on March peak downtrend S/R (purple) for what should be a pretty powerful wedge as Ratio squeezes down against the converging horizontal and uptrend S/R (white).
OG idea Aug...
![VVIX: [VVIX] Still Lookin for that 3rd HH PEAK.. Volatility Incoming?](https://s3.tradingview.com/b/B4JXwNCM_mid.png "[VVIX] Still Lookin for that 3rd HH PEAK.. Volatility Incoming?")
![VVIX/SPX: [VVIX/SPX] Sitting Exactly On Dec & Jan Peak DT S/R!](https://s3.tradingview.com/i/iH2FKjpe_mid.png "[VVIX/SPX] Sitting Exactly On Dec & Jan Peak DT S/R!")