In looking at the intraday charts of the VIX, the combined picture supports a move down to about 17.65 before trading up toward 28.
Specifically, today’s move up in the VIX is on an unclosed gap and that gap will close before the VIX has any shot of moving higher and this suggests that the S&P will trade narrowly sideways between probably about 1357 and 1377 for a few days before it likely trades sharply down in looking at a possible Rounding Bottom in its daily chart.
This Rounding Bottom is comprised of a Complex Head and Shoulders pattern and/or Double Bottom, but at a minimum, it confirms at 22 for a target of 28 with further confirmation coming at 24 for a target of 32.
Should this pattern turn out to be good, it speaks to a spike up in volatility and a spike down in the S&P, but prior to such potential inverse directional moves between the VIX and the SPX, there is likely to be a bit of narrow sideways trade ahead and this may suggests that Friday’s payrolls report will miss the mark somehow.
And those are just a few of the possibilities that come from taking a look at the VIX.
Specifically, today’s move up in the VIX is on an unclosed gap and that gap will close before the VIX has any shot of moving higher and this suggests that the S&P will trade narrowly sideways between probably about 1357 and 1377 for a few days before it likely trades sharply down in looking at a possible Rounding Bottom in its daily chart.
This Rounding Bottom is comprised of a Complex Head and Shoulders pattern and/or Double Bottom, but at a minimum, it confirms at 22 for a target of 28 with further confirmation coming at 24 for a target of 32.
Should this pattern turn out to be good, it speaks to a spike up in volatility and a spike down in the S&P, but prior to such potential inverse directional moves between the VIX and the SPX, there is likely to be a bit of narrow sideways trade ahead and this may suggests that Friday’s payrolls report will miss the mark somehow.
And those are just a few of the possibilities that come from taking a look at the VIX.
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