Option Investor
Update
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I thought I had posted a daily chart of the VIX yesterday showing a possible setup but I can't find it. So just in case it didn't get posted I'll show it now. Since the January low we've seen VIX consolidating and it's forming a sideways triangle. Considering it dropped down into this triangle it should be considered a bearish continuation pattern. A bearish pattern for VIX is of course bullish for the market. But ideally the pattern needs one more leg up to finish it, as depicted on the daily chart below. That might coincide with a new price low this month. It will be something I'll be watching carefully. This would also suggest we will Not see a capitulation low (marked by a spike in fear). If we get the new low it could be of the sneaky variety.

VIX daily chart:
[Image 1]

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