VIX dominated by bears dragging the market lower throughout the day
S&P 500 Volatility Index (VIX) Technical Analysis Report for Apr 22, 2019 | by Techniquant Editorial Team
VIX ended Monday at 12.42 gaining $0.33 (2.73%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (VIX as at Apr 22, 2019):
Monday's trading range has been $0.98 (7.42%), that's slightly below the last trading month's daily average range of $1.10. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for VIX.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on April 18th, VIX actually gained 2.73% on the following trading day.
Prices are trading close to the key technical resistance level at 13.14 (R1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to April's high at 14.39, upside momentum could speed up should the VIX mark new highs for the month.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Its common bearish interpretation has been confirmed for S&P 500 VIX. Out of 458 times, VIX closed lower 53.49% of the time on the next trading day after the market condition occurred.