VIX: VOLATILITY CYCLES / COMPRESSION / DIVERGENCE / PUTOVERCALL

DESCRIPTION: In the chart above I have included an update on a MACRO analysis of VIX VOLATILITY CYCLES. The creation of a set of new cycles is marked when VIX finds a new floor of support.

POINTS:
1. Deviations have been adequately adjusted for VIX with a 7 Point difference between CHANNELS.
2. Price Action is currently resting at NEW FLOOR of 19 & Price Action is consolidating.
3. 5 YEAR TREND LINE IS APPROACHING MONTHLY PRICE ACTION FLOOR.
3. NO RECESSION AFTER 1998 HAS EVER COME TO AN END WITHOUT VIX FIRST SPIKING TO 40 OR 45 AT LEAST.

RSI: There is in fact a lot to be said for RSI as it rests roughly below the 50 Point average which would signal that RSI is set to flip into Oversold territory. RSI must reach the 30 Point average in the coming weeks or anything above the 30 Point average & rising could signal a divergence occurring between ascending RSI LEVELS & CONSOLIDATING PRICE ACTION WHICH CAN MAKE FOR SOME VIOLENT VOLATILITY IN THE NEAR FUTURE.

MACD: As of now MACD is resting at an average oversold level of -2.0 but is signaling a move to the upside in coming weeks.

MAIN POINTS OF CONTROL:
1. RSI DIVERENCE OCCURS AS RSI RISES & PRICE ACTION CONSOLIDATES.
2. MACD FLIPS INTO POSITIVE TERRITORY.
3. A BREAK OF 21 POINTS FOR PRICE ACTION CAN BE INDICATIVE OF FURTHER UPSIDE FOR VIX IN THIS SCENARIO.

FULL CHART LINK: tradingview.com/chart/UUCv2fGk/

VIX
VIX

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