The VIX Volatility Index has found support at its 2-year lower trendline (shown with a brown line in the weekly bars chart below).
This has been a firm line from which stock market selloffs have begun. The only time the VIX has dropped below it was last summer which triggered the mini crash as the VIX then reversed and rocketed up to the 54 area. The VIX's most recent touch down to this line was in late October where it slowly started climbing producing another market selloff. This week's close on the VIX will be important as it will likely determine whether the VIX gets a stick bounce from this line or it begins a sideways consolidation pattern or base.
Trade well my friends
Alan
