So far it looks like the VIX wants to keep the bullish run alive, and I’m sure not the one to try and convince the VIX into going the opposite direction. We have a small gap above present prices, but we also have a bigger gap still open below, at the bottom trend line. In the long term the peak $50 price level must get retraced if this VIX bullish run is to continue. Since the January bottom, the VIX has created higher lows which is encouraging that the VIX may have some running room left yet.
A small H&S pattern has been created, but this can be a very bullish sign as the VIX could be getting ready for another upside breakout. Besides the VIX retracing the $50 price level, it should also break the $90 price level in the next few years. Vertical fear levels cannot be maintained over the long term as investors would fall dead from all the stress fear creates!
The entire VIX pattern is diagonal related so it’s next to impossible to pick out a good looking 5 wave impulse, except for very small ones.