Short Term Trading Member Forum

[techcharter]

stkboy1 - VIX chart

Yes, it looks like a triangle so far.

Assuming it is a triangle, then there should be a rally the next couple of days to complete wave e. Then a massive market selloff to start Wave C (zigzag) in the VIX.

I don't prefer that count. It's to optimistic for the markets at these high levels. A more bearish count is the VIX consolidated from the Aug -07 high to Dec'07 low with a zigzag. The zag was an ending diagonal and in truncated, both forecast a sharp advance, which is what we are experiencing. I see a possible Wave 3 of 3 about to unfold. This is all part of the zig of a much larger zigzag correction pattern for the VIX.