VIX - A storm is brewing

VIX may have reached a significant bottom during today's volatile trading session. As seen below, the recent rug pull shown on the 1D chart has finally concluded; almost to the exact penny.

When we step back and look at the weekly timeframe, VIX is currently bouncing higher off of a major bullish divergence that was built up over the past several months.

The RSI is also retesting the neutral line (50) and VIX itself has closed on a major support level.

If VIX continues its move higher next week, we could see a significant drop in the S&P500

Disclaimer:
Any information contained within this post does not constitute any financial, investment, or trading advice. Trade or invest at your own risk.

Comment:

VIX is up decisively today as we expected. This is only the beginning...

Comment:

VIX is up significantly from the initial posting of this idea. We see a mostly sideways consolidation occurring above the key level of $20. Multiple rug-pulls are occurring on the smaller timeframes, but larger timeframes seem clear (for now). Bearish momentum continues to build.