Since the original breakout the vix has did the usual falling wedge move which is retest and bounce. The movements since the breakout has now formed a Pennant, if we breakout of this Pennant to the upside , the most likely target will be the 200sma. A move to the 200sma would likely send the spy to 385-387.
After that type of move I'd expect a consolidation and pullback in which the market would dead cat
Contrary perspective, inside this pennant is also a double top , but the vix would need to break pennant support and fall below 20.90 for the market to really rally.
Reference note, 22 is tough resistance
After that type of move I'd expect a consolidation and pullback in which the market would dead cat
Contrary perspective, inside this pennant is also a double top , but the vix would need to break pennant support and fall below 20.90 for the market to really rally.
Reference note, 22 is tough resistance
