VX Ascending Channel

10月9日

VX has shown a lot of strength over the last couple of weeks which I consider to be unusual. DXY and treasury yields have also spiked recently, but the equity market remains resilient. We've been chopping for weeks and we'll likely see a big move once this range breaks.

VX had a big red day today after rejecting a previous high. This is what VX would normally do when stocks are rallying, but that hasn't been the case until today. VX dropped today, but it's still way too high. This is a large divergence that has been building for weeks.

We should see some fireworks soon, maybe after CPI but who knows. If this recent VX strength results in a failure then it has a long way to fall and we may be back to full risk on mode for a while. It will be an important watch. I'd be concerned watching treasury yields and VX climb along with stocks if I were a bull. but we'll see.