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