VIX under pressure, but approaching strong supports
The VIX is coming under fresh downside pressure, with the November bear trend extending further, with prices now approaching trendline support from 2014 and the 11.02 low of August.
A tick lower in the Tension Indicator anticipates risk of a deeper reaction towards critical support at the 10.28-10.88 year lows of 2014-2015, but any immediate tests are expected to settle into consolidation as stochastics are already oversold and showing signs of stabilising.
Resistance is lowered to the 14.72 high of 1 December and extends to the 15.56 high of 14 November. A close above here would help to stabilise price action and open up a test of minor congestion around 19.00, but a break above the 23.01 high of 4 November is needed to improve price action and target multi-month critical reactions at the 26.72 high of July.
A tick lower in the Tension Indicator anticipates risk of a deeper reaction towards critical support at the 10.28-10.88 year lows of 2014-2015, but any immediate tests are expected to settle into consolidation as stochastics are already oversold and showing signs of stabilising.
Resistance is lowered to the 14.72 high of 1 December and extends to the 15.56 high of 14 November. A close above here would help to stabilise price action and open up a test of minor congestion around 19.00, but a break above the 23.01 high of 4 November is needed to improve price action and target multi-month critical reactions at the 26.72 high of July.