VIX ran out of juice this morning. It's no surprise. VIX just broke its previous wedge for a new pattern. Currently, VIX is back to its former upward channel from days ago. At the same time, it formed a new long-term wedge.
The dotted lines are the upward channel. The dashed lines are the long-term wedge. The dashed lines were from February and early March.
VIX is currently finding support below. Either it will find support at the bottom of its upward channel or its tried and true support at the bottom of the wedge.
Judging by the weak breadth of stocks (since FATMANG stocks own the ES), I would lean that it's in the upward channel. Why? Because very weak breadth of stocks causes failed breakouts.
In order for breakouts to sustain with just 7 stocks holding the ES/NQ together, either 1) everything is going perfect with all 7 companies of FATMANG. No pullbacks at all or 2) the financials and transportation sectors recover and sustain their rally too.
If you're a volatility trader, you welcome this type of instability. There would be multiple chances to trade the VIX ahead.