VIX: VOLATILITY CYCLES / POINT OF CONTROL / RAISING THE CEILING

DESCRIPTION: In the chart above I have provided a SEMI-MACRO analysis of VIX a volatility index on the 4 hour timeframe. This is a brief update on VIX as we have had some interesting momentum taking place.

POINTS:
1. Deviation of 7 points continues to stand and justifies Supply & Demand Pocket Placement.
2. RSI is currently OVEREXTENDED but PRICE ACTION continues to exhibit compressed behavior by only GRAVITATING around 20 POINTS.
3. MACD signals that past cycles have at least seen 2.00 POINTS on MACD'S deviation from Median but has only seen 0.50 since the beginning of this VOLATILITY CYCLE.

IMPORTANT: With a new ceiling confirmed by price actions recent upward momentum it is safe to say that if price action surpasses 23 we will come to see elevated VOLATILITY for SPY, SPX, ES1! or NQ1!. I would consider a BULLISH & BEARISH scenario when it comes to VIX but no recession has ever come to an end without VIX first touching 40 POINTS but here it is.

SCENARIO #1: In a BULLISH scenario for VIX we see an eventual RETEST of 19 followed by further consolidation and a BREAK of 23 POINTS by MARCH 8th.

SCENARIO #2: In a BEARISH scenario for VIX we come to see a break of 19 POINTS to the downside followed by an inevitable RETEST of the 8 YEAR TREND LINE & would elongate capitulation due date.

FULL CHART LINK: tradingview.com/chart/UUCv2fGk/

VIX
VIX
bearmarketBeyond Technical AnalysiscapitulationPivot PointspredictionS&P 500 (SPX500)SPDR S&P 500 ETF (SPY) supply_and_demandSupply and DemandVIX CBOE Volatility Indexvixfuturesvolatilityindex

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