Only with a break over the recent high of 21.00 can the bears start to get a little curious about a possible VIX explosion into the 35/40 range later this month.
VIX'60min
VIX' daily, rainbow
Summary
The rainbow (elder impulse) chart put in another green candle, and confirms that the underlying trend is currently up - even though it sure doesn't feel that way!
First target for the bears is 21..then 24/26
I remain holding to a weekly cycle target of 35/40 in August/early September.
With the FOMC out of the way, the bears again now have the opportunity to whack this market lower. However, as we saw last week, if Mr Dragi starts opening his mouth again, then maybe we'll see more disturbing huge gap ups.
We have the ECB tomorrow, and the big jobs data on Friday, so there is the chance the VIX can spike into the mid 20s..at any point.