Above is the daily chart of VIX. Apparently, it has been falling, and reached the 8-month low three days ago, which is indicated by the lowest blue horizontal line.
The index has been dropping along the green downtrend line. Together with the upper downtrend line (red), I wrote it would jump when the index broke the pennant last week. However, VIX broke the red line but didn't jump as expected. Instead, it kept on slumping and reached the new low.
This level has a strong support, but as we can see, the level of 18 is also a very strong resistant. We should keep an eye on this level.
Once VIX breaks 18, the next resistant is shown by the purple up-trend line. Obviously, the longer time VIX takes to break the line, the higher level it will boost to.
Is it already the time for it to jump!?
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