Correct 🤝—a clue to be cautious when chasing a breakout. Additionally, the Monthly Extreme High at 6007 was marked on the prior weekly plan but was accidentally left out of the current one.
Recently the VIC has not always been an inverse correlation. What causes this and how do you know how to use it. When it is an inv corr that you can use and when not? Cheers
I primarily use the VIX support and resistance levels in conjunction with the final upside and downside targets for ES, highlighted in each plan, as a contextual gauge. These VIX levels also provide added confluence when ES is testing key levels.
For instance, if ES is testing a notable support level while VIX is simultaneously testing resistance, and buyers remain in control of the auction, the context favors looking for a potential long setup.
Another example comes from the overnight session: ES breached its final upside target at 5967, but VIX failed to hold below its support—it looked below and snapped back. This failure to confirm the move above 5967 in ES suggests a divergence. While it doesn’t necessarily mean ES will reverse, it's a meaningful data point to carry forward. One would typically expect a successful breakout from a 12-day balance area to coincide with a sharp drop in VIX—but that didn’t happen. This divergence potentially opened the door to be more aggressive on the short side once ES dropped back within the range.
In the end, it's just a tool I developed and should not be relied upon exclusively.
Thank you Smash! You forgot to mention the VIX testing that support level overnight.
Correct 🤝—a clue to be cautious when chasing a breakout. Additionally, the Monthly Extreme High at 6007 was marked on the prior weekly plan but was accidentally left out of the current one.
Ah that’s right! That one was on point!
Thank you ssssoooo much.
5907 nails on the coffin for buyers!
Thanks Smash!!
Thank you very much!
Recently the VIC has not always been an inverse correlation. What causes this and how do you know how to use it. When it is an inv corr that you can use and when not? Cheers
I primarily use the VIX support and resistance levels in conjunction with the final upside and downside targets for ES, highlighted in each plan, as a contextual gauge. These VIX levels also provide added confluence when ES is testing key levels.
For instance, if ES is testing a notable support level while VIX is simultaneously testing resistance, and buyers remain in control of the auction, the context favors looking for a potential long setup.
Another example comes from the overnight session: ES breached its final upside target at 5967, but VIX failed to hold below its support—it looked below and snapped back. This failure to confirm the move above 5967 in ES suggests a divergence. While it doesn’t necessarily mean ES will reverse, it's a meaningful data point to carry forward. One would typically expect a successful breakout from a 12-day balance area to coincide with a sharp drop in VIX—but that didn’t happen. This divergence potentially opened the door to be more aggressive on the short side once ES dropped back within the range.
In the end, it's just a tool I developed and should not be relied upon exclusively.
thank you lito!