XIV Hits All Time Highs As The VIX Sets Records That May Never Be Broken

In last week’s article, I had noted that as long as the XIV was able to hold the 83.93 level, I expected to see it hit the 87.76 – 91.53 zone into this week with the potential to see a move into the mid 90’s prior to making a large degree top.
On Tuesday of this week, the XIV closed at the upper end of this 91.53 zone and then on continued to extend higher into Wednesday, and as of Thursday’s close is now trading at the 93.83 level having so far been contained by the 238.2 Fibonacci extension level of the move up off of the 7/6 low.
While the XIV is so far following through on the smaller degree pattern and is tracing out a very clean impulsive pattern off of the 7/6 low, it is now starting to push the limits of the upper end of what I still prefer to count as a large Ending Diagonal pattern off of the April 12th low.
The price action over the next several trading sessions should be key in helping give further clues as to where the XIV is heading in the near term.
As I noted in the title of this article, the CBOE Volatility Index or the VIX index has set some records in 2017 that have been truly remarkable and may never be seen again. Not only in ultra-low price levels but in the frequency that these ultra-low price levels have occurred.

This post was published at GoldSeek on Friday, 21 July 2017.