VIX Volatility Weekly Chart Sideways Symmetrical Triangle

The market bulls enjoyed the downward moves with the VIX during 2009, 2010 and halfway thru this year, with the only serious spike corresponding for the April 2010 market sell off. The falling wedges and positive divergence bounced the VIX upwards. The chart bottomed in 2010 and early 2011. The VIX spiked for the April 2011 market sell off, the fear reached elevated uneasiness at 48. The light blue lines show that the indicators wanted to see another price high, which occurred in late September as the market bottomed. The RSI and MACD histogram were negatively diverged which created the price spankdown and the indexes rallying but the green lines wanted to see another matching high. But, the VIX has worked steadily south inside the sideways pink triangle. There is unfinished business up above, perhaps a move up to the gap at 36 or even a return to the prior highs above 42.

The 20 week is above the 50 week which is very bullish (market bearish). In addition, the 200 week MA is sloping upwards indicating continued overall upward price buoyancy. The 200 MA also disects the sideways triangle at 28-ish. The close today at 28.13 is above the 200 week MA at 27.82 which is bullish (market bearish). Watch the 50% levels for the indicators to see if bullishness is signaled, especially the RSI now at 49%, only a point away from verifying upwards momo. Projection is an upward move out of the sideways symmetrical triangle and continued sideways movement at elevated prices along the 200 week MA, obviously corresponding to lower and weak equities prices going forward. 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 financial advisor before making any investment decision.