🧠 What Is the VIX and Why It Matters Right Now
The Volatility Index (VIX), often called the “fear gauge,” has surged to nearly $60, a level we at Vital Direction had anticipated weeks in advance. This dramatic move has injected high volatility across global financial markets — particularly the SPX500, Nasdaq, DAX, and key Asian exchanges like China, Singapore, and Australia.
Such a spike in fear typically signals a pivotal turning point in market sentiment — the kind that leads either to a massive relief rally or a further collapse.
📈 Elliott Wave Analysis: Is VIX About to Complete a Triangle?
Our proprietary Elliott Wave analysis suggests the VIX is forming a classic triangle structure, with wave D likely completed and wave E expected to take the index down to around $16 by mid-September 2025.
This scenario fits with a standard corrective wave pattern, indicating that market panic may be peaking — and that a bullish reversal could be imminent if the structure holds.
⚠️ Critical Technical Level: A sustained breakout above $65.73 would invalidate this triangle structure. That would imply a much more severe market breakdown and trigger deeper fear-driven selloffs across global equities.
📊 SPX500 Forecast: Rare Risk-Reward Setup in Play
If the VIX follows our expected path and declines to $16, we believe the SPX500 and broader US markets could be on the verge of a massive bull run.
This would mark the return of risk-on sentiment and potentially spark fresh highs in major indices and high-beta stocks such as Tesla, Apple, and Amazon.
🎯 Our View: All scenarios remain possible, but we see exceptional risk-to-reward potential building across U.S. equities — particularly in the SPX500. This is one of the cleanest technical setups we’ve seen in months.
🚨 Final Thoughts: All Eyes on the VIX
The VIX is now the key chart to watch.
A move down to wave E at $16 = potential bull market ignition.
A breakout above $65.73 = likely market meltdown and sharp selloffs.
This is a textbook example of how Elliott Wave Theory and volatility analysis can provide a true edge in market timing.
The Volatility Index (VIX), often called the “fear gauge,” has surged to nearly $60, a level we at Vital Direction had anticipated weeks in advance. This dramatic move has injected high volatility across global financial markets — particularly the SPX500, Nasdaq, DAX, and key Asian exchanges like China, Singapore, and Australia.
Such a spike in fear typically signals a pivotal turning point in market sentiment — the kind that leads either to a massive relief rally or a further collapse.
📈 Elliott Wave Analysis: Is VIX About to Complete a Triangle?
Our proprietary Elliott Wave analysis suggests the VIX is forming a classic triangle structure, with wave D likely completed and wave E expected to take the index down to around $16 by mid-September 2025.
This scenario fits with a standard corrective wave pattern, indicating that market panic may be peaking — and that a bullish reversal could be imminent if the structure holds.
⚠️ Critical Technical Level: A sustained breakout above $65.73 would invalidate this triangle structure. That would imply a much more severe market breakdown and trigger deeper fear-driven selloffs across global equities.
📊 SPX500 Forecast: Rare Risk-Reward Setup in Play
If the VIX follows our expected path and declines to $16, we believe the SPX500 and broader US markets could be on the verge of a massive bull run.
This would mark the return of risk-on sentiment and potentially spark fresh highs in major indices and high-beta stocks such as Tesla, Apple, and Amazon.
🎯 Our View: All scenarios remain possible, but we see exceptional risk-to-reward potential building across U.S. equities — particularly in the SPX500. This is one of the cleanest technical setups we’ve seen in months.
🚨 Final Thoughts: All Eyes on the VIX
The VIX is now the key chart to watch.
A move down to wave E at $16 = potential bull market ignition.
A breakout above $65.73 = likely market meltdown and sharp selloffs.
This is a textbook example of how Elliott Wave Theory and volatility analysis can provide a true edge in market timing.
VITAL DIRECTION ~ Wealth Matters
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Social Media: vitaldirection.co.uk/links/
Join our Telegram community to stay updated: t.me/+uO1myDok2eQwMWM0
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
VITAL DIRECTION ~ Wealth Matters
Read the full article on our website: vitaldirection.co.uk/analysis/
Social Media: vitaldirection.co.uk/links/
Join our Telegram community to stay updated: t.me/+uO1myDok2eQwMWM0
Read the full article on our website: vitaldirection.co.uk/analysis/
Social Media: vitaldirection.co.uk/links/
Join our Telegram community to stay updated: t.me/+uO1myDok2eQwMWM0
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.