Even though the broad market had a narrow range consolidation day, the VIX volatility index declined today. Generally speaking, a decline in the VIX has bullish implications for the stock market. Below is an updated daily chart of the VIX showing the h-pattern that I mentioned previously and a horizontal support line at the base of the "h". Notice the VIX closed just below that horizontal support line today.
Markets are fractal in nature which means that similar patterns occur on multiple timeframes and often simultaneously on multiple timeframes. Here is a weekly chart of the VIX showing another (higher timeframe) h-pattern and the horizontal support line. Notice the horizontal support line on the weekly is being violated.
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