Quick Note on the $VIX

Two charts, close and far. We are re-approaching the Great Sven Wedge on the $VIX from above. We’re backtesting a bullish breakout on it, and I have no way of knowing what will happen from here. I just want to alert you to it. If it becomes a false breakout, great, equity markets can moon. If we actually do launch, it will be a crash of some kind, I would suppose. I’ve posted a lot of bullish charts lately, and my bias is bullish here and I have many reasons to hold that view, but this pattern does contradict that, as it stands now, broken out.

My point is: don’t necessarily not be hedged. I don’t know and cannot know what’s going to happen, though I lean to the view that it will be a false breakout. I absolutely could be wrong about that. Here’s the close-up:

VIX

Here’s zoomed out, you can see we’re above the 250-day EMA, strictly-speaking the definition of a long-term uptrend:

VIX


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