VIX shares appear to be in a strong near-term rally within a longer-term bearish trend. The 200-day moving average is downward sloping. However, VIX has been rallying recently. Although it is too early to tell whether this rally could be the beginning of a new long-term trend, the stochastic oscillator is overbought and tells us that this level of upward momentum is unsustainable. Investors should proceed with caution. |