Top 5 Weekly Trade Ideas #3 - VX Risk On?

VX has had a hard rejection off of the 21 area. It failed to breakout of its bull flag and instead fell all the way back below support around 18.40. Two massive red days in a row for VX leading into the election results and FOMC. The market is seemingly going full risk on mode heading into the election. That typically means we're going to rocket in my experience, but also leaves the door open for extreme volatility if the market gets a surprise.

Having said all that, this 18.40-18.20 area is critical for rest of the week and it makes things fairly simple. Final downside target for VX would be around 16.45.

VX below 18.40 = Bullish for SPY
VX above 18.40 = Bearish for SPY