Volatility Futures Break out initial push

As described into year end 2020 a change in volatility could happen. Now the VIX Index has gained almost 40% since beginning of the year.

It is possible to see a decreasing triangle formation with a follow through break out with higher volume and a strong price push.

It will remain unclear in what dynamic the different sector stock indices will move into the next weeks.

From a asset class rotation perspective we might be able to assess the risk by observing spreads between the indices (Small to Large Caps) for hints of the risk appetite in the market.

Russel versus Dow Jones will be interesting and also how technology will change compared to Dow Jones and others.

Hint: This is not a recommendation to buy or sell any securities. We only provide technical stock market analysis for free.