After an exact test of the trendline from 2007 and simultanious test of the 78,6% retracement of the whole (VIX) upmove, of cource VIX made bounce - and trapped a lot of people above the blue resistance line.
In a powerful move down, we test the Fibonacci level again (Robert Miner who popularized the 78,6% level many ears ago mentions that this is perhaps the most important fib level, being the last support for a correction - and I tend to agree)
At the same time we see a minor break of the trendline which is followed by a test of that break and then the real break.
This is calssic charting
First the level i tested (A)
Then we have a break failure (TRAP)
Followed by a new test of support(A) which is brokenm in a pre-break (1)
Which is tested (2)
And finally the "real" break. (3)
After seeing story so many times we "know" that after a failure break followed by a "real" break we get a speedy decline.
So let's see what happens this time......
