Volatility Rally | Major Demand Zone
The Volatility Index (VIX) has been in a historical downtrend the past weeks / 2 months! VIX has also been moving abnormal in relation to the S&P 500 Index which it tracks Volatility in.
The Volatility Index has sunk to a major demand zone, and is now breaking back out of the area.
After hitting Lows of around $19 the VIX is breaking out upwards. We are seeing a dump in the markets from major S&P Bear Market Trendline as well.
Bears are stepping in at these levels in the markets, and the volatility index is rising, signaling further downward movement coming in the market.
Simply put, the Volatility index is breaking out from its Major Demand Zone, and generally if history repeats will rally up to the supply zone up around the $30 level. This has been a typical swing move in the index since the beginning of 2022.
Reasons VIX looks bullish :
- TTM Squeeze (Daily & Weekly)
- Reclaimed Daily EMA Cloud
- Market Rejecting Major Trendline (S&P)
- Cup & Handle on VIX (1hr / 1D)
- Double Bottom
- Market Greed
- CPI & FOMC coming up
How to play :
UVIX commons
VIX option calls
etc.
There are multiple reasons Volatility is rising currently, and Technicals back this thesis up strongly.
I hope you liked the though!
The Volatility Index has sunk to a major demand zone, and is now breaking back out of the area.
After hitting Lows of around $19 the VIX is breaking out upwards. We are seeing a dump in the markets from major S&P Bear Market Trendline as well.
Bears are stepping in at these levels in the markets, and the volatility index is rising, signaling further downward movement coming in the market.
Simply put, the Volatility index is breaking out from its Major Demand Zone, and generally if history repeats will rally up to the supply zone up around the $30 level. This has been a typical swing move in the index since the beginning of 2022.
Reasons VIX looks bullish :
- TTM Squeeze (Daily & Weekly)
- Reclaimed Daily EMA Cloud
- Market Rejecting Major Trendline (S&P)
- Cup & Handle on VIX (1hr / 1D)
- Double Bottom
- Market Greed
- CPI & FOMC coming up
How to play :
UVIX commonsVIX option callsetc.
There are multiple reasons Volatility is rising currently, and Technicals back this thesis up strongly.
I hope you liked the though!
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.