When the VIX is declining, the excited bullish stock herd start to calm down, from the mini panic spike in late January 2018. Before the big spike, VIX players were in a trap with a small inverted Megahone pattern also showing. Inverted Megaphones are more open ended with the open end facing to our left on the charts and with the cone pointing east. A normal Megaphone would always have the wide mouth facing east (right side) and the cone would be pointing west. (Left side)
We still could see some dipping in the next few days, but no new record lows should happen. The VIX has wild and choppy wave patterns, but this is the real world when it comes to diagonal wave counting. Complaining about volatility will get us nowhere, and all I can say is, “Buckle Up”, as this roller coaster ride will start to get going again.
The COT report that comes out every Friday will give us a better idea who is still net long or short the VIX.