Source: Short Side of Long
Just a quick follow up on yesterdays VIX post. While the S&p 500 is now testing its uptrend line support (with a potential double top), the VIX has actually gone ahead and already broken out. Is this a leading indication of further selling to come?
The market will show us soon enough. This is not the final close for the week so it remains to be seen where the VIX will be on Friday afternoon, however as of now this break out signal is quite bearish for equities in the sense that volatility just might be increasing.