Volatility is potentially poised to surge as the VIX six month chart is showing a large ascending triangle formation. Below is a chart showing both the Bollinger bands with 50d moving average and the ascending triangle with resistance at about 80 and a support trend line from September until now showing the massive surge.
I think there is a high likelihood of a retest of the 80 area and possibly a break above in the next few days. Right now the NYSE and NASDAQ McClellan oscillators are showing that the market continues to be overbought and must correct.
It’s worth noting that a lot of false bullish signals in the stock market can occur when volatility is this high. I’ve seen many skilled technicians get suckered in to buying the tops of these rallies. Be careful!
