{"id":123255,"date":"2018-03-14T14:32:32","date_gmt":"2018-03-14T18:32:32","guid":{"rendered":"http:\/\/countingpips.com\/?p=123255"},"modified":"2018-06-01T15:42:14","modified_gmt":"2018-06-01T15:42:14","slug":"eye-opening-index-volatility-charts-and-predictions","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/03\/eye-opening-index-volatility-charts-and-predictions\/","title":{"rendered":"Eye Opening Index, Volatility, Charts and Predictions"},"content":{"rendered":"
March 14, 2018<\/div>
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By\u00a0www.TheTechnicalTraders.com<\/a><\/u><\/strong><\/p>\n

Volatility setting up like 2014\/2015,\u00a0Get ready for some interesting range rotation and price swings.<\/strong><\/p>\n

Our recent research shows that the current US markets are setting up for what could become a very interesting price range rotation as well as increased volatility.\u00a0 Our team of researchers at\u00a0Technical Traders Ltd.<\/u><\/strong>\u00a0have identified a number of key elements that appear to be in place similar to 2014\/2015 where the market setup an initial deep price rotation, followed by a deeper price rotation only to end with an advanced price rally on the news that the US Fed would continue buying US debt.<\/p>\n

Let us take a look at the 2014 price activity first.\u00a0 You may not be able to see the similarities like our team of researchers, and I will confess, these charts have a lot of analysis on them making it a little noisy and hard to sort through, but if you\u00a0focus on the September 2014 date range<\/strong>, you may notice a similarity to right now in the use markets (primarily the NQ).\u00a0 The focus of this article is to alert you that the market dynamics are evolving quickly and you need to stay aware of the changes as they happen.\u00a0 There is a huge amount of capital at play in the US markets and if our analysis is correct, our advanced price modeling tools will assist you in understanding what to expect in the near future.<\/p>\n

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This next chart shows us the ES (S&P) chart as of today.\u00a0 It is clearly a different setup from the 2014 price setup \u2013 but still similar enough for our modeling systems to catch this event.\u00a0 The volatility range of price is increasing in a sideways channel.\u00a0 This could be a good thing for traders like us.\u00a0 The volatility could present some real issues for trend followers like Hedge Funds and other modeling systems as they are not likely to see this price pattern setting up.<\/p>\n

We believe the ES will rotate lower over the next few days to attempt to retest support near 2660 before attempting another short rally likely ending near, or just above 2800.\u00a0 This would represent a failed price rotation with a new double top or higher high price level very similar to the second top near the end of September 2014.\u00a0 We believe this second top could produce another deeper dive in prices sometime in early April 2018.\u00a0 Still, the 2660 level is support and we would have to be cautious near those levels.<\/p>

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This next chart is the NQ (NASDAQ) and is showing a pattern that is much more similar to the 2014 ES chart.\u00a0 Support at 6820 is our critical price level and we are expecting a downside market price move immediately to retest this level as well as the upward price channel (in light blue).\u00a0 You can see the range expansion levels drawn in YELLOW and if you study this price rotation to the 2014 price chart, you\u2019ll see some strange similarities.<\/p>\n

What is happening is that price is lacking direction and is attempting to hammer out peaks and valleys in an attempt to find support and resistance.\u00a0 The chance of a deeper price move as well as increased volatility is quite high the further this pattern continue to form.\u00a0 Any price move lower will likely cause the VIX to increase back above 20 and any price swing below 6600 on the NQ will likely cause the VIX to spike well above 25 again.\u00a0 As you can see, the downside price volatility range is near 5900.<\/p>\n

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In fact, we called this rally nearly to the day over a month ago completing the bullish outlook portion. Now, the question is if our current analysis and our 6-week old prediction are correct with a big selloff.<\/p>\n

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See this near perfect stock market prediction we posted the day the market bottomed!<\/strong>
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Our Adaptive Dynamic Learning (ADL) price modeling system is showing the VIX is setting up for a massive increase over the next two to three weeks.\u00a0 VIX is currently trading near 16 and could spike to as high as 40 within just a few weeks.\u00a0 The only way the VIX could attempt a move like this is with a moderately deep downward price move that would take out or test our support levels.\u00a0 This is part of the analysis we conduct on a Daily basis at\u00a0www.TheTechnicalTraders.com.\u00a0 It is not just about one or two charts \u2013 we look at all the puzzle pieces to see how they all fit together to give us a very clear picture of what is likely to happen in the future.<\/p>\n

This could set us up for a good short volatility trade much like the last one in Feb where we shorted UVXY for a quick 42.5% profit.<\/p>\n

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Want to know what you should be trading and how you can profit from these setups?\u00a0 First thing to do is to understand this is a \u201ctrader\u2019s\u201d market and that you probably need some help understanding these moves.\u00a0 Second thing to consider is how will you identify opportunities from this move while protecting your investment capital? \u00a0The last thing to consider is if\u00a0http:\/\/www.thetechnicaltraders.com\/#video<\/u><\/strong>\u00a0is the right solution to assist you moving forward to help you navigate these markets and stay aware of these opportunities?<\/p>\n

We believe our research is as beyond compare.\u00a0 We don\u2019t believe you can find any other firm that can accurately predict what is going to happen in the future and that our advance price modeling systems and predictive analysis models assist us in keeping our clients keenly aware of future moves and relatively safe from unexpected events.\u00a0 Want to know how we can help you, visit\u00a0www.TheTechnicalTraders.com<\/a>\u00a0<\/u><\/strong>and review some of our recent research reports and see how well we\u2019ve been nailing these market moves for 2018.\u00a0 We hope to see you in our members area so we can share more insight with you.<\/p>\n

Chris Vermeulen<\/p>\n","protected":false},"excerpt":{"rendered":"

By\u00a0www.TheTechnicalTraders.com Volatility setting up like 2014\/2015,\u00a0Get ready for some interesting range rotation and price swings. Our recent research shows that the current US markets are setting up for what could become a very interesting price range rotation as well as increased volatility.\u00a0 Our team of researchers at\u00a0Technical Traders Ltd.\u00a0have identified a number of key elements […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-123255","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/123255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=123255"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/123255\/revisions"}],"predecessor-version":[{"id":123256,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/123255\/revisions\/123256"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=123255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=123255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=123255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}