Market volatility surged higher last week as the major stock indexes sold off. The catalyst for the surge in volatility was due to increased tension between the U.S. and North Korea. Now that the so-called geopolitical tension has subsided near term, the CBOE Volatility Index has declined by nearly 6 points from last week's high of 17.28.
Is there a support level where traders should look for a bounce in the VIX? At this time, the major daily chart support level in the VIX should be around the 10.96 level. Please note, this chart level is a major retrace area from the high and also a spot where the 20- and 50-day moving averages are on the daily chart. This is a level where I will look to get involved on a move back higher in volatility.
