VIX breakout just getting started.
Updated
We may see a small pullback in the VIX early in the trading day, or it can continue bullishly upward towards the target of the massive falling wedge it broke out of recently.
Don’t let a few green index candles fool you, we have a long way to go before we crush the VIX, unless there is a serious change in fundamentals. When VIX is high, a good hedge is to short or buy puts on the indexes, or the leveraged indexes, ideally before the breakout but I don’t think it’s too late. Technically the VIX is for SPY but it tends to be a good indicator for overall market activities.
High VIX = sell pressure on stocks and crypto.
Comment
Also to reinforce the VIX should continue upwards, there is a clear bullish divergence on the RSI. Our high from yesterday registered about as high as the previous one, which was much higher on the chart. This should be interesting to watch over the next few days.
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