Is the bull trend in tech about to end? What Tech and its volatility index does in the next few weeks will go a long way to answer this question!
This chart looks at the NDX 100 and its Volatility Index (VXN) on a weekly basis over the past couple of years.
The trend for the NDX remains up/bullish. No price action of late has changed this trend! It tested its September highs two weeks ago, and so far those highs look to have held, forming a potential double top.
VXN movement has been shallow the past few months, as it remains inside of a narrowing pennant pattern.
What would stock bulls love to see? A breakout above the September highs and a break of support by VXN!
What would send a concerning message to stock bulls? A break of support at (1) and a breakout of the pennant pattern at (2)!
With the election, one week away, which direction the NDX and VXN head over the next couple of weeks, should send a very important message from leadership!
