By comparing SPX with VIX, we can draw the following conclusions :
VIX
It has broken out of the bearish wedge. However, the two recent bearish engulfing candles are not too encouraging. If 30.97 support can be sustained and the price rebound from here, then we can expect it to go up higher.
SPX500
It has broken down from the bullish wedge and forms the triple LH and LL pattern. While the price has dropped initially, it has rebounded strongly last night with 2 bullish engulfing candles as well, just the opposite of VIX.
The price can goes up a bit higher and retest the 2900.80 resistance level. If it fails to break above, then we can expect another sell down. Or, it can continue to fall from here as well.
I am watching closely these levels before deciding the next course of action.
VIX
It has broken out of the bearish wedge. However, the two recent bearish engulfing candles are not too encouraging. If 30.97 support can be sustained and the price rebound from here, then we can expect it to go up higher.
SPX500
It has broken down from the bullish wedge and forms the triple LH and LL pattern. While the price has dropped initially, it has rebounded strongly last night with 2 bullish engulfing candles as well, just the opposite of VIX.
The price can goes up a bit higher and retest the 2900.80 resistance level. If it fails to break above, then we can expect another sell down. Or, it can continue to fall from here as well.
I am watching closely these levels before deciding the next course of action.
