Tags: VIX | trend | bear | index

The VIX Is in an Uptrend

By    |   Tuesday, 10 Mar 2015 08:13 AM

The CBOE Volatility Index (VIX) reached a low of 12.87 last week, after reaching a low of 12.86 the week before. What is interesting about those low readings is that they connect a trendline on the weekly chart of the VIX that started last June.

The low during the week of June 30 last year was 10.28 and after it was reached, the index rose to as high as 17.57 in July before dipping back down again.

The index spiked sharply higher during the correction in September and October, reaching as high as 31.06.

After the selloff, the market bounced back and the VIX fell quickly, reaching a low of 11.53 in early December.

When you connect the low from June with the low from December, you get an upward-sloped trendline for the index, and it hit that trendline with the lows from the last two weeks.

It is also worth mentioning that the weekly slow stochastic readings for the VIX performed a bullish crossover last week. The last three times this happened, the VIX rallied sharply and in each of the last two instances, the index doubled within five weeks of the crossover.

I should also mention that the weekly slow stochastic readings for the S&P 500, Dow Jones Industrial Average and Nasdaq all three made bearish crossovers last week.

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The CBOE Volatility Index (VIX) reached a low of 12.87 last week, after reaching a low of 12.86 the week before. What is interesting about those low readings is that they connect a trendline on the weekly chart of the VIX that started last June.
VIX, trend, bear, index
221
2015-13-10
Tuesday, 10 Mar 2015 08:13 AM
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