Starting today, I am including the VIX index in my Finlogix analyses.

The VIX index is a 30-day measure of the US stock market volatility. Stock investors use the index to identify current greed and fear level in markets when making investment decisions.

Like the US Dollar DXY index, VIX can be traded directly through CFD (contracts) on particular brokers of your choice.

There are 6 US major economic releases this week with highlights on the Fed rates decision.

Expect markets including stocks to have moderate to heavy volatility.

Assessing VIX’s high timeframe candles:

Yearly Candle: Green Body with a Longer Head Wick

Monthly Candle: Green Body with a Longer Head Wick

Weekly Candle: Previous Close is a Red Doji with a Small Body current is developing a Red Body

Daily Candle: Last Friday’s close is a Green Long Upper Shadow current is developing a Red Body

Both the yearly and monthly candles are showing same patterns as well as the weekly and daily candles. Very interesting.

The last time we saw the stock markets in greed levels which depicted 79 VIX in 2020, the year Covid striked the whole world.

We saw a very strong bearish price action in 2020, from  79 March 2020 peak to 22 December 2020 low.

The index plunged into deeper territory by 2023 to as low as 12, since then unable to go beyond the notional oversold value 20 and yet to recover this year 2024.

Even though the stock market is generally performing good this year, the VIX index is still hovering below the minimum 20 level.

Based on the current price structure on the 4H, I am focusing on the current trading range extremities’ only.

I can see that the immediate resistance is 16 while the support 12.

From these points I also lay out the premium to discount arrays.

For now I will short the current levels, it’s in a premium array.

I am taking profit towards the discount 61.80% fib retracement level while putting a stop loss above the last 3 swing high points which is the closest resistance.

With an almost even risk to reward ratio.

VIX Index Intraday Analysis and Trading Plan For March 18, 2024

Mar 18 2024

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