The VIX has made a top which sure looks like it contains an ending diagonal. Anything diagonal related can signal a reversal which is usually very violent once it starts. The last little 5 waves all overlap and they look like three wave patterns. This means a rally in stocks which is already well underway from yesterday and still continuing this morning.
When stocks go up, then calm returns as well and the VIX gives us a visual of this process. More Elliott Wave counters ignore the VIX, which will always work against their big degree wave counts.
The VIX was ready to crash in October 2008 but yet the GSC degree wave counters were betting the VIX had much further to go. Even after the VIX hit 100 their wave counts dictated that the VIX must eventually go to the moon, after all, in 2008 they were only
at a wave one in Primary degree, and the worst was yet to come.
Elliott wave ignored all contrary indicators at that time, like insider buying and even Buffet was extremely bullish as well. The big lesson I learned from that is never to have a bearish wave count in sympathy with the bearish herd. Never have a bearish wave count when a solar cycle hits bottom as well. If none of this SC or GSC degree bull shit does not play out by 2021 then look forward to seeing another 5-8 year bull market. All the SC and GSC degree followers will be left in the dust again.
The VIX has about three obvious gaps on its trip up, and all these may get closed
on this trip down. It can be fast or slow, either way, as I would like to see a double bottom.
All gaps to the upside have now been filled and at the same time the VIX is showing a big Head&Shoulder pattern.