The market action in the past two weeks has been excessively choppy but there is a rhyme and reason to it as the S&P 500 and the VIX are both steadily constructing large symmetric triangle patterns on their daily charts.
Looking at the daily chart of the S&P above we can see that it is still maintaining its red channel after slipping out of the two-year blue channel. The inlay chart shows the developing large symmetric triangle that is clearly visible now.
The daily chart of the VIX above shows we can officially say goodbye to the six-year downhill brown line channel. The horizontal blue channel which took the VIX out of the brown line channel is still containing the VIX but now that the uphill red line channel has become dominant it is quite possible that the blue channel could become history in the next few months if the red channel forces the VIX up out of it. The inlay chart at the top shows the large triangle also developing on the VIX which is very similar to the S&P.
These large triangles imply that a large sustained move may not be far off in the S&P and the VIX.
Trade well my friends