Last weekend I thought it would be the economic data to cause slumps in the markets, but it turned out to be the attack on South Korea by North Korea. Though technical analysis could tell you which way market will be moving, you can never know how it will be triggered. There might have no relationships between the attach and the market (and technical analysis), but such coincidence is like a magic to me...
Anyway, let's get back to the market. The sudden attack has caused to huge worry among investors about a possible war between the two sides of Korea which will definitely harm the global stock markets.
So I have checked the market volatility index VIX.
As you can see, the index once again tried to break the red wedge from below. It did try once last week but failed.
MACD crossed its EMA from below, showing a bullish signal here.
By using the fibonacci projection, the index is still currently resisted by 23.6%-level. If this level breaks and the breakout of wedge confirms, it could go as high as 31.33 (100%-level). Then... it must be something serious, which could affect the world and last for longer period, to trigger such jump in volatility.
Watch out of another bearish wave!
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