1. Below is the daily and hourly view of the Vix for the past 5 days. As we can see the Vix shot up to 20 yesterday with falling stock markets.
2. The Vix hourly shows a decline in the volatility index in the past 24 hours. We are down to 14 and bullish movement in the stock markets.
2. We can see that during Asia Nikkei failed to make a lower low on daily. H4 indicates bulls entering at the weekly bear profit zone yesterday before Brainard’s speech (WM1 – WS2) and subsequently making higher highs with bulls entering off role reversal (WS1). Also notice how price has not made a lower low after being sold at the H4 21. Let’s pay attention to how the stock markets open in Europe and London today and see how traders have taken the news out of the FOMC last night. If we see a further drop in volatility on the Vix and stock markets going up then this is likely to indicate risk on sentiment which could lead to a weak Yen and strong commodities.
3. This is not a trade plan. You must have a trade plan for any pair you are trading. This information helps one identify risk on or risk off sentiment in the market.

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