VIX (VX) Reclaims Key 20 Level Ahead of NFP
The VIX (VX) is consolidating yesterday’s surge to downchannel resistance (on the daily chart). With the VX now back above the psychologically key 20 whole figure level after the dip late April to below it to a fresh 2023 low, the VX is now forming a long bodied green weekly candle, halting a 6 week slide from the 2023 high. Odds are now moderate and rising for a test of the psychologically key 25 whole figure level by mid May. Watch for volatility today 830am EST with the US’ average hourly earnings, Non-Farm Payrolls (NFP) and unemployment rate. Congratulations to premium subscribers who benefited from the March 17, 2020 warning of the pending slide in the VX, one day before its record high on the front month contract, or more recently from the Nov 30, 2021 alert of the growing probability of a rebound in the VIX and repeated Jan 18, 2022. The weekly and daily RSI, Stochastics and MACD are bottomish or consolidating recent gains. I am looking to enter long in the green zone (of the daily chart), targeting the red zone for Thursday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter). Click here for analysis on S&P500, AUDUSD
Source: Interactive Brokers TWS
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