Will the VIX develop a problem?


Yesterday, the VIX closed at 15.58, so it looks like it is okay.   But is it really?

The verdict is actually not in yet … take a look at October, April and now.  April was the lowest reading, with October and now not as low as it was in April.    With that condition, there remains a possibility of an inverted Head & Shoulder pattern which would have upside implications for the VIX.

SInce the VIX moves opposite to the market, that would not be good for the stock market.