VIX is at the gap, and also near the trendline. Therefore, a bounce for VIX is likely soon. It might fill the gap first though.
It was an exaggerated spike in October, but it is apparent that the Second Yellow Arrow low is ahead. The August high for VIX was too flat. The spike in October fits the Cycle much better even though VIX overshot the blue arrows with surprising strength.
Expect some bounces, but VIX should see lower levels tested to form the Second Yellow Arrow low in the Cycle.
VIX made an exaggerated spike up in October once it broke above the red resistance. VIX is now back under the red resistance. Therefore, some short term downside for VIX is likely.
An important low for VIX is anticipated due in 1 week.
S&P Cycles were mixed in October. There were short term cycles in October that were quite negative, but some were surprisingly positive. The result was a very choppy month. In contrast for November, the Cycles turn extremely negative and remain consistently negative for S&P throughout the month.
The large scale VIX Cycle is heading much higher into December.
It does appear that the Second Yellow Arrow Low is in place. As well, VIX pushed up quite strongly from the low giving confidence to the Cycle continuing to play out.
VIX is currently testing and finding some resistance at the historical red line resistance. VIX will likely be choppy for a few weeks next as it can continue to test the resistance before breaking out in late October.
The Cycle shows a massive spike up into a December high. October looks moderately weak for the markets with a downward bias. November is likely to be the worst month according to the Cycle.