For today's chart we've chosen to take a look at the CBOE Volatility Index because it is currently testing the support of an important moving average. As you can see from the chart below, today's 17.5% drop has sent the VIX below the support of the 50 DMA and now it is testing the combined support of the March/April highs and the 200 DMA. Traders would see a bounce off the nearby support ($13) as a sign of increased market volatility.


You May Also Like

Related Analysis
  1. Savings

    The Pros and Cons of Buying on Amazon

  2. Stock Analysis

    IBM Bids Semiconductor Business a Fond Farewell

  3. Stock Analysis

    Sony Turns to Crowdfunding for Employee Ideas

  4. Stock Analysis

    Time Warner Gets a Piece of a Rock-Solid Franchise

  5. Stock Analysis Has Not Forgotten Its Roots

Trading Center

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!