VIX Analysis May 2015 (D)
Created on Friday, 01 May 2015 02:00
Written by Austin Galt
It is crunch time for the Volatility Index (VIX). While price has broken support given by the monthly PSAR indicator, I suspect it is a fake out move and price will shortly explode higher. Let’s quickly check out the daily chart.
VIX DAILY CHART
The main support level stems from the double bottom at 11.52 which is denoted by the horizontal line. Price should not trade below there. Doing so will likely mean stock indexes are exploding to new all time highs. While possible, it is a scenario I just don’t favour.
The RSI is setting up bullish divergences and I favour one last low which sets up yet another.
Once the low is in place and provided it doesn’t break clearly below the double bottom level, I expect price to explode higher big time.