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VIX Moving Higher from 25, Will Test Top Bands Soon

|Includes: iPath S&P 500 VIX Short-Term Futures ETN (VXX), VXZ

The CBOE Volatility Index (VIX) has been in a range between 20 and 30 since July of this year.  It keeps coming back to the mid-level of 25, however.  Just this week, we broke above 25 to test the Top Acceleration and Bollinger Bands (see the following chart).  Previous tests of this area were quickly reversed lower, in line with a market rally.

However, based on Friday's intra-day activity thus far, it looks as if we are having another run up in the VIX to its Bands.  This may correlate with a bit longer period of market weakness than many are anticipating.  This is the last trading day of October and looks to be a selling day.  Will the first trading day of November come Monday bring more selling?

Moby Waller,

Disclosure:  None