VIX Crash Daily Chart Review

The January 2019 VIX crash has now gone deeper than expected and when that happens an instant wave count review should be initiated. The VIX is now sitting on the 200-day MA line close to the $16 price level. Is the 200-day-MA going to give us some support? A small triple bottom is also developing along with the new moon on Monday, so this can provide an additional reason for a reversal.  If we are lucky we may see some COT updates but I won’t know that until late today.  Investors as a group, have now started to calm down like a herd of cattle would after being stampeded.

We may see a mini VIX rally up past $20 again as this can also work as an expanded pattern at the Minuette degree level.  As we can see the VIX is littered with many spikes in both directions and I try to look for the longest spikes which tend to hold the longest before the next reversal.  All the market bullish hype in the world will mean little when the VIX is ready to turn.

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