8 - Volatility in 2018-2019 & The Financial Earthquake

The VIX has been classified in a Flat Structure with the Intermediate degrees (A)(B)(C) (orange) acting as the three-swings sequence required for this type of pattern.

Intermediate (A) (orange) reflects the previous spike witnessed in early February 2018, while Intermediate (B) (orange) reflects the attempt to correct that shock-wave, also the attempt for Indices across the world to reenter the complacency periods.

In early August, after the complex structure on the down-side completed, the VIX initiated once again an alarming rise, which turned into an actual spike in volatility and the official return of the bears when it comes to stocks and indices.

Intermediate (C) (orange) has been labeled in a five-swings sequence in its Minor sub-waves 12345 (red), and its sub-waves should exceed the end of Intermediate (A) (orange), if this swing were to complete the Flat Structure mentioned.

Such a rise in the VIX, if it were to take place, would translate into a continuation of the bearish sentiment already evolving around stocks and indices globally.

From a mathematical perspective, the 100% Fibonacci Extensions of Intermediates (A) & (B) (orange) could define a possible finish line for fear season.
Wave Analysis

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