VIX Volatilty Daily Chart Tight Bollinger Bands Sideways Triangle

The tight BB's squeezed out an upside move over the last two days. Price has viloated the upper BB for two days  in a row but there is no reason this should not continue. Using the prior red oval as a fractal, the tight BB's squeezed out the upside move in early May which ran along the upper BB into late May. Note the top at early June when VIX punched over 27. This marked the exact bottom in the broad indexes.  The VIX has broken up and out of the sideways triangle pattern. For the two-week price move higher, peak to peak, the green line, note how the RSI and MACD line are long and strong and want to see higher numbers moving forward.  The stochastics and ROC are lagging (red lilnes) but if the VIX jumps large, these two indicators could quickly turn long and strong and forecast higher VIX numbers moving forward as well.

The blue square shows the test of the 200-day MA at 17.87 which occurred yesterday. Watch this level today.  The red square shows the cross of the 20 MA above the 50 MA which is very bullish for VIX (bearish for markets since markets move invesely to the VIX).  The red line is very important and referenced by Keystone the last few days.  Watch VIX 16.10 as a bull-bear line in the sand.  If VIX stays above, the bears rule moving forward. The bulls can only regain control if they push the VIX under 16.10. The thin maroon lines identify the upper resistance target levels at 19-ish, 20-ish, 24-ish and 27-ish. The VIX may reverse from one of these levels which would mark a short-term market bottom. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.