We are getting close to a VIX bear trap as the big gap is just about closed off. Wall Street calls the VIX the fear index and as the VIX crashes investors become oblivious to the trade wars that have started to erupt in 2018. All the bad news in the world doesn’t seem to phase the bullish investor at this time. Of course that can change in a blink of an eye as we now have 2 open gaps above present prices. These two gaps will get filled so, I’m confident in saying fear is going to come back into the markets for June.
At $13.40 the big gap will be closed after which it can develop a base and then soar again. Stopping well short of a new record low would be ideal.