VIX at the 4 hour view.
It seems that the VIX algorithms did a support test in the morning. So, I'm not absolutely sure if the second green line or the third green line is the flag support for the next two weeks. VVIX is still above 110. That tells me that volatility is not over yet. What's battling the VIX? High liquidity.
Although liquidity just paused in its momentum, it's still high and still drowning the VIX. It will take 2-3 weeks before liquidity is low enough for the VIX to actually have some fun.
For now, the VIX is doing the volatility dance. That's when it makes a series of slightly higher lows during cash session. I have about 8/5-8/7 for the next volatility jump according to that wedge.
So who wins in the battle of attrition? VIX or high liquidity?
It seems that the VIX algorithms did a support test in the morning. So, I'm not absolutely sure if the second green line or the third green line is the flag support for the next two weeks. VVIX is still above 110. That tells me that volatility is not over yet. What's battling the VIX? High liquidity.
Although liquidity just paused in its momentum, it's still high and still drowning the VIX. It will take 2-3 weeks before liquidity is low enough for the VIX to actually have some fun.
For now, the VIX is doing the volatility dance. That's when it makes a series of slightly higher lows during cash session. I have about 8/5-8/7 for the next volatility jump according to that wedge.
So who wins in the battle of attrition? VIX or high liquidity?