Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

VIX Supports S&P’s Bearish Rising Wedge

By Abigail DoolittleStock MarketsJul 31, 2012 08:23AM ET
www.investing.com/analysis/vix-supports-s-p%E2%80%99s-bearish-rising-wedge-131503
VIX Supports S&P’s Bearish Rising Wedge
By Abigail Doolittle   |  Jul 31, 2012 08:23AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Putting aside the exquisite pattern repetition in the daily chart of the VIX below, it is worth noting that the VIX began to confirm its small Bull Wedge yesterday within a budding Diamond Bottom marked in purple with both patterns serving as “helper” patterns to its most recent small Falling Wedge.
CBOE MKT VOLATILITY IDX
CBOE MKT VOLATILITY IDX

It is that Falling Wedge that is the inverse pattern to the S&P’s bearish Rising Wedge that has flattened enough to cause it to appear on a quick glance as a bullish Ascending Trend Channel but something that seems unlikely when viewed in the context of other equity indices and when viewed in weekly form and, of course, in looking at the strong pattern above.

Breaking each part down, the VIX’s Bull Wedge confirms at 18.47 for a target of 21 and it is supported by a gap at 18.99 with both that gap and the Bull Wedge supporting the VIX’s Diamond Bottom that confirms at 21 for a target of about 26.50 and a level that will take the VIX closer to the Falling Wedge’s target of 27.73.

It is this potential move up in the VIX that is likely to be accompanied by the S&P dropping to the 1267 target of its Rising Wedge and something that is supported by its own Bear Wedge with a target of 1329, a fraction gap at 1320 that is highly likely to fill and the strong possibility that the S&P will follow in the Russell 2000’s recent footsteps of dropping below its 200 DMA and a probability that puts the S&P below 1319 at least.

Might the VIX’s Falling Wedge drop lower for a “better” apex? It could, but it doesn’t seem likely based on the fact that the pattern’s current apex is very strong not to mention the fact that the sideways trading of the Diamond Bottom provides an early tell on the likelihood that it fulfills up as the S&P drops.

Put otherwise, the VIX supports the S&P’s Rising Wedge.
VIX Supports S&P’s Bearish Rising Wedge
 

Related Articles

Tim Knight
DraftKings In A Very Dangerous Position By Tim Knight - May 07, 2021 3

This is a good real-life example of how charting can be very helpful in giving warnings that something is going wrong. Below is the chart of DraftKings Inc (NASDAQ:DKNG) without...

Zacks Investment Research
Guest Host Tonight By Zacks Investment Research - May 07, 2021

This is Brian Bolan filling in for the Ultimate Editor, Jim Giaquinto. Jim has a tendency to take a vacation day each month and today was it… so I drew the lucky straw...

VIX Supports S&P’s Bearish Rising Wedge

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email