The top is in! ....until the market makes another top... and another one... and another one. First the market has to shake this bout of fear. Just a few weeks ago fear had never been so low, at least measured by the VIX. Despite all the drama and even aggressive comments and actions from North Korea, the VIX hit 8.84.
This past week, right after the FED at 2pm, the VIX hit a new all time low, plunging under 9 to 8.84. The VIX swiftly moved back over 9, but the 'damage' was already done.
What an incredible trading session yesterday! At one point the VIX was up over 50%!
VIX Manipulation? The VIX is in? I've wrote about it previously. The widely followed "Fear Index" is supposed to give an accurate portrayal about 'fear' in the market. However this morning there is more talk about the VIX being manipulated.
The VIX was sporting that classic head and shoulder pattern. Let's face it, head and shoulder patterns on the $SPY haven't worked out so well over the last 8 years, but the VIX? Any bearish formation usually resolves as planned for the VIX. As such yesterdays recovery... would it follow through today? I posted this chart in the chat room: