Update on VIX: Nov 18, 2014

VIX continues to hold its own since completing the Bat Pattern (in purple) following Bullard’s mid-October smackdown.

2014-11-18-VIX daily 0844Since tagging the purple .886 on Nov 10, VIX has climbed steadily — following the Fib Fan lines fairly faithfully.  If today’s low holds, I can easily see a backtest of the falling purple channel midline in the next day or two.

2014-11-18-VIX 15 0844Whether it exceeds that level is hard to tell, as the daily equities melt-up smacks of continued intervention at every turn.  In other words, the yen carry trade is alive and well until TPTB decide to let a little air out.

And, should it fail, shorting the VIX is the next most favorite central planning tool.


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