The market volatility has taken a toll on many emotions over the last 2 weeks as we have broken many records for fear, panic, and short interest in the market. It is very clear that this drop has spooked many market participants out of their positions.
However, statistics do suggest that these opportunities generally lead to rallies as the market reaches extreme oversold conditions.
Above, I have illustrated a potential Bearish Harmonic pattern, with the key fibonacci retracement levels marked on the pivots. The VIX chart illustrates the nature of the Call / Put relationship, by representing panic levels above 20.
As we can see , this harmonic pattern would suggest that a rally may be coming in the near future as panic begins to decline, or as the short traders start getting squeezed out of the market.
However, statistics do suggest that these opportunities generally lead to rallies as the market reaches extreme oversold conditions.
Above, I have illustrated a potential Bearish Harmonic pattern, with the key fibonacci retracement levels marked on the pivots. The VIX chart illustrates the nature of the Call / Put relationship, by representing panic levels above 20.
As we can see , this harmonic pattern would suggest that a rally may be coming in the near future as panic begins to decline, or as the short traders start getting squeezed out of the market.
Note
Updating as we put in newer highsNote
With all the news next week, I also want to be aware of this volatility as I do see limit orders below us Note
Looking good so far Note
And VIX decides to rip today on monday. Market meltdown. Harmonic no longer valid. Note
Looking at this trend line as a better guideline 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.