VIX overshot its .886 on Friday, losing .60 in the same way SPX gained 3 points — all in the last few minutes of the session. Is this price action a signal of a continuing rally, or is it a futures related drop that signals the rally’s last gasp?
As of the close on Friday, VIX had gone just about as far as it could in the latest falling wedge. Any lower and the pattern would be broken, and the falling wedge is as reliable a chart pattern as they come. Just look at the rally at the bottom of the last wedge.
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