The upper bollinger bands on the VIX now have a very flat slope.
The VIX was just shy of closing outside its upper BB's on Friday,
but with the slope so flat could easily do so on Monday.
that said here's one scenario I could see unfold: should there
be more weakness on Monday, this would cause the VIX to close
outside it's upper BB's, then we have the FOMC on Wednesday.
Because of the 'flatness' of the upper bands, I could see the VIX
closing outside its upper BBands but then close back inside again
for a quick buy signal - then see the market rally - one option
would have it form a lower high wave B, then down again in C. We'll
see....
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VIX observations
Posted by matt on 18th of Sep 2021 at 01:32 pm
The upper bollinger bands on the VIX now have a very flat slope. The VIX was just shy of closing outside its upper BB's on Friday, but with the slope so flat could easily do so on Monday.
that said here's one scenario I could see unfold: should there be more weakness on Monday, this would cause the VIX to close outside it's upper BB's, then we have the FOMC on Wednesday. Because of the 'flatness' of the upper bands, I could see the VIX closing outside its upper BBands but then close back inside again for a quick buy signal - then see the market rally - one option would have it form a lower high wave B, then down again in C. We'll see....