Volatility turning higher

Whilst the indexes closed largely flat, the VIX actually closed up a moderate amount. Sure, the VIX remains at a very low level, but bigger weekly cycle is starting to tick higher again.

Whether bullish or bearish, traders should be mindful of the weekly VIX cycle, which is again starting to turn upward on the MACD cycle.


VIX'60min

VIX, daily, rainbow

Somewhat surprisingly, we did actually get a green candle to close the day on the rainbow chart.


VIX, weekly

Summary

Almost a 8% close higher for the VIX, yet we're still only around 18. Even a further 10% jump will barely get us to 20, and that is barely borderline 'interesting' for the bears.

As noted many times before, look to the VIX weekly as one of the prime early warnings for any major down cycle. For anyone who believes 'big doom down wave' coming soon, now would doubtless be the time to start going long volatility.

A little more later.