Emergency VIX Analysis... 30+When I woke up this morning, I had to run my son & his friend to school. When I got back home and sat down in front of this computer, my eyes widened and I said "MY GOD!" Someone said capitulation is a feeling. Well honey... this is it. Spiked VIX, huge gaps down, nausea, & nerves shook. On to the analysis.
We are wicking from the top as of now. But this journey has been a lesson of what can happen during times of a a heightened VIX (sustained time over 20). Here are a couple of things that I have learned and confirmed with my own eyes since the new year (2025).
Monthly wicks should not be ignored. Price needs to regain the top of the wick and hold for further move up.
VIX divergence is a thing. General observations...
VIX up, mkt down = mkt down as VIX continues up
VIX down, mkt up = mkt up as VIX stays down
VIX holding above 20 in a range is still bearish. After major spikes, watch for this. Methodical sell off likely to occur.
If you have other observations to express... please do. Taking a breath as we navigate these bearish times .