Volatility index chart analysis

Weekly chart of the CBOE Volatility index (VIX):
- bullish divergence between the MACD and and the VIX price
- VIX reached the support area and started to move higher
- the scenario I have in mind? a move up

Market Volatility Index (the fear index)

Last week the VIX index surged 24% higher, a huge increase signaling the comeback of fear in the stock markets. I will monitor this week if this index will be able to go and remain above the 200 day moving average (the green line on the above chart). If yes, probabilities would favor a continuation of the downtrend of the equities markets.

Volatility index, VIX

Volatility (nervousness) of the markets has come back to the levels of Sept 2008 before the market krash started.

Market Volatility Index (VIX)

The volatility index shows the state of nervousness of the market. When it goes up, the market goes down and when it goes down the market goes up.
Let's look at the chart:
1) Index has now clearly dropped below the 200 day moving average (see yellow tag on the chart). This moving average (the blue line) is a proxy for the long-term direction of a market.
2) Does this mean that the bear market is over and that a bull market has now started?
3) Let's see if next week the VIX tries to retest the 200 day moving average. If at the end of the week, it is still below this average, I expect this market rally to continue.