Two Approaching Supports Coming: Keep an Eye on the VIX

01/28/2016 9:44 am EST

Focus: STRATEGIES

On Wednesday, Marty Chenard of StockTiming.com takes a technical look at the VIX since, short-term, it has showed improvement by moving lower. Marty suggests that with two approaching supports coming, the index should be watched carefully.

The VIX closed at 22.50 and will be testing an important fan line support Wednesday (the support/fan line that the VIX was sitting on at the close Tuesday).

Note the sequence of higher highs from December to now...so the concern would be centered around a possibility that the VIX could rise higher than the previous high. (Since the VIX moves in the opposite direction of the stock market, that would be a negative.)

Short-term, the VIX has showed improvement by moving lower, but with two approaching supports coming, the VIX should be watched carefully.

To see the chart, click here…

By Marty Chenard of StockTiming.com

Related Articles on STRATEGIES