VIX Triggers Buy Signal Which Means Stock Market In Trouble

The VIX (volatility index) triggered a strong buy this past Friday. If the VIX is a buy then fear is about to return in the stock market. Generally, the VIX goes up when the stock market declines. The sharper the decline, the higher the VIX jumps as fear surges.

The VIX can be charted the same way as any asset. In this case, the VIX broke out of a downtrend in early April 2024. After surging to a high over 21, the VIX has retraced back to the breakout trend line. This is known as a return to the scene of the crime. It acts as major technical support for the next leg up. If this plays out, the stock market is about to get hammered over the next few weeks and months.

Investors and traders should be on high alert for market volatility to return. Factors remain strong for a major market sell off in the coming months.