Rise in VIX (2011-02-16 VIX analysis)

Yesterday HSI was down more than 200 points, but it is still within the trading range. We all look forward to the time when the index breaks the range.



Above is the graph of Volatility Index VIX. Last time I predicted that the volatility index would surge; however, it is still at the lowest level in these years. Hang Seng Index did have a great volatility, but S&P didn't. So, VIX didn't rebound.

So I checked again today. MACD crosses its EMA from below, which means there is a bullish cross support the rise of VIX.

RSI is below 50, which means there is no strong power stopping the momentum of surge.

We can expect that VIX will start going upwards. Resistance is at level of around 18.