The volatility index continues crashing lower as optimism for an earlier than expected FED pivot re-emerge. Inflation for July came in at 8.5% YOY with zero month over month change. This better than expected print sent stocks roaring higher, while crushing the $VIX. The past 9 weeks have seen a $VIX printing weekly lower high & lower low candlesticks.
If markets remain stable through the weekly close, the resulting $VIX candle will have breached and closed below a 9-month support line (green). The next support level would be around the early April (gray) 18 level.