Taking another stab at VIX’s daily chart.   Yesterday’s low of 17.09 was just .03 off the .786 Fib level of 17.12 we mentioned a couple of days ago [see: The VIX is In].

There are a couple of different interpretations.  Fist: that the smaller (red) pattern is complete at the .886 and should reverse strongly.  Second: that yesterday’s low is just a Point B in a larger pattern such as a Crab.  Third, That we should be looking at the larger scale pattern — which calls for a Point B reversal at the .786 of 16.67.  So, which is it?

The daily RSI chart above indicates an upturn as soon as tomorrow.

Though RSI fell through the presumed channel line a couple of days ago, the same thing happened several times before — most recently October 2011.  So, I see no reason VIX can’t still rebound significantly.

The channel lines support the idea, and even hint at a new, larger H&S pattern.

The next few days should be interesting.  Look for answers to questions and comments in the morning.