Intraday VIX Crash Update.

Gaps have opened up many times since the August peak, but have been mostly closed off. Two big gaps are remaining that I would like to see get closed, with the bottom gap being the first to close,  followed by closing off the $12 gap. Investors are having a tough time becoming completely complacent. Any bad news in this stage of the game,  can send investors into a mini panic. 

A worst case scenario could send the VIX to new record lows, as the August decline could work as a set of declining diagonal waves. Any new low in the VIX, could drop like a rock or the speed of a flash crash, before it starts to crank up again. 

Up near the $23 price level, we still have a partially open gap, which makes for a great price target in the future. Commercials are heavy net long, with a 2.5:1 ratio, while the speculators are net short with a 1.68:1 ratio. Between the two groups somebody is wrong, and my bet is not on the speculators being right. They are flogging a dead horse, or should I say “flogging a dead bear”,  thinking that the VIX still has a long way to go down. 

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