VIX Daily Positive Divergence Set-Up

VIX daily chart showing a positive divergence set-up. Price would need to print a sub 15.5 number to verify the weaker price move with corresponding stronger indicator moves. Price tapped the 15.5 level intraday Friday. Traders are very complacent these days, not a fear or worry in the world--that is why this is useful as a contrarian indicator, especially with the technicals indicating that up will be the path now or soon for the VIX. Give it leeway to close in the 15.0 to 15.5 area but from this area or higher the VIX should pop upwards, and the moves are typically violent. The move up will be in concert with equities moving down. Interesting potential gap fills above shown with the neon circles.

Market bears need to at least see the VIX get back to a 16 handle, market bulls want the VIX to keep heading lower. Market bulls will maintain control of equities as long as the VIX is under 18.5; bears will be happy and growling if they can get the VIX above 18.5. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.