On April 21, 2020 the VIX closed at 45.41, the next day the VIX could only reach a high of 45.07 thereby creating a very small gap between 45.07 & 45.41 that has yet to clear.
Below is the weekly overview of the VIX. I typically don't like to give too much weight to non-hortizontal lines however in this case it is necessary because we have a descending line & an ascending line that has formed on the weekly VIX. Notice how we bullishly closed last week above the two purple lines without any wick. Notice also how an ascending triangle has formed since April 2021. Notice how what appears to be this weeks high is possibly setting up a measured move to clear that April 21, 2020 gap (TBD of course)
Below is the current daily VIX, notice how we have spent four days above the Tenkan Sen line with today possibly a 5th day (see my Oct 11th VIX post for why this is important to note). When I reviewed the VIX over the weekend after Friday's close what caught my eye was that on Friday the VIX gapped above the daily 50% retracement line and has stayed above it which had me watching the VIX like a hawk this week.
In addition, we just closed a statically bullish month in a bearish way so maybe we are on our way to finally clearing out this gap? Only time will tell...
If the VIX manages to close below the Tenkan Sen line before filling the overhead gap then we might see another month or two before we have another VIX set-up...for me all eyes are on clearing gaps for short term/swing trades and clearing the ES weekly gap at 4015.25 for LT trades.
Below is the weekly overview of the VIX. I typically don't like to give too much weight to non-hortizontal lines however in this case it is necessary because we have a descending line & an ascending line that has formed on the weekly VIX. Notice how we bullishly closed last week above the two purple lines without any wick. Notice also how an ascending triangle has formed since April 2021. Notice how what appears to be this weeks high is possibly setting up a measured move to clear that April 21, 2020 gap (TBD of course)
Below is the current daily VIX, notice how we have spent four days above the Tenkan Sen line with today possibly a 5th day (see my Oct 11th VIX post for why this is important to note). When I reviewed the VIX over the weekend after Friday's close what caught my eye was that on Friday the VIX gapped above the daily 50% retracement line and has stayed above it which had me watching the VIX like a hawk this week.
In addition, we just closed a statically bullish month in a bearish way so maybe we are on our way to finally clearing out this gap? Only time will tell...
If the VIX manages to close below the Tenkan Sen line before filling the overhead gap then we might see another month or two before we have another VIX set-up...for me all eyes are on clearing gaps for short term/swing trades and clearing the ES weekly gap at 4015.25 for LT trades.
Nota
Maybe this isn't considered a gap...not sure what I would call it BUT I went through the "daily" VIX and most solid body green daily candle had a candle afterwards that had "at least" a wick to cover the solid green body. Most were "wicked" pretty quickly, some a bit longer and some fairly long (3 years). We are now in the "bit longer" category.Nota
Welp...now we have two overhead gaps to fill on the VIX as one was made today. Today's gap will clear at 31.13, & April 20, 2020 at 45.41. Additionally, the VIX closed today above the Tenkan Sen line making it 5 straight days...this has not happened since the Covid drop and until we close below it...beware!Nota
Gap at 31.05 closed....set up is still in existence to clear the gap from April 20, 2020.Nota
After 7 days of staying above the Tenkan Sen line we decisively closed below it. However we are still above the daily cloud and now have a rather large overhead gap to fill at 26.75. Lots of back & forth right now between bulls & bears..Nota
What a weekly close on the VIX! The moves right now in the market and the VIX have been rather large. IF the VIX can stay in the daily cloud then I still think this gap could clear in the coming weeks. If we dip below the daily cloud then the market can reach new highs and would more than likely stay muted through Q1 2022.
Penafian
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Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.