volatility analysis, page-4

Volatility Update.

VIX Daily: Hasn't taken out the 61.8% at 27 after all this time. Trading in a sideways consolidation. A break below 30 and we appear to be safe with enough momentum to fall below the 27 level. A break above 44 and it will take out the double top at 48 and the market will fall dramatically. MACD has negative divergence to price.

VIX Weekly: Looking for the MACD to roll over and drag the index down. If so, it will give us some breathing space.

VIX Monthly: The monthly MACD is still medium term bullish. Only weight against it is a weak weekly and daily.

XJOIV Weekly: Surprisingly the double top was taken out on the XJOIV weekly chart at 24 even though the VIX did not take out its double top? However, price was stopped at the weekly 50% Fib at 29ish. Enough to reverse the trend?

Conclusion: Not completely out of the woods yet. With a short term pull back on the daily and weekly we may see markets relax for the short term? Just keep an eye on VIX 48 breakout to signal an imminent market pull back.