Trendline Breakouts

Implied Volatility Model and Technical Event Model on VX Signaling a Breakout

The futures we trade for the S-T closed at 31.08 with the breakout levels running from 31.77 to 32.13 to 33.04. TEM supports perceived risk index futures breaking out. Both Short Term and Intermediate-Term the underlying tension supports follow through on a breakout.

Such a break supports a low risk/ high return for the long-only scalping system on VX.


The Short Term VX futures ETF – VXX – finished the day Monday at 35.26 breaking out above our V-bands at 34.76 and the low side of the S-T fixed-resistance zone at 34.63. The high side of our fixed S-T resistance sone is 35.82, a move above that level should be a confirmation the market is in fear and selling off.

The more conservative engagement would wait for the weekly bar to breakout.


With the long term VX futures in the VXZ ETF, the situation is the same. With the daily bar breaking our and the weekly bar pushing up under the breakout band. The close of VXZ at 35.46 has taken out all three S-T resistance price levels, a confident sign of a sell-off to come.


We will enable the August VX futures on the open today, they are the most active.

Was this post helpful?