Taking a look at the twelve year chart of the VIX Volatility Index, the channel to watch now is clearly the red channel. The VIX spike all the way across this red channel occurred during the last week of August where we saw the Dow open negative 1200. This red channel is a dangerous place to be but it continues to act as a magnet pulling the VIX into it.
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At the market low this past week, you can see that the VIX briefly entered into the red channel but quickly reversed back below it escaping a bullet for now. Looking closely, you can see that the pink ascension channel that took the VIX up still contains the VIX and everyone will be watching to see what happens when it gets back to the lower line of this rising pink channel.
Trade well my friends