We noted this weekend that the VIX had made a big move on Friday but that it had rammed right up to the resistance at which bulls had owned the bears (and taken their lunch money to boot) during any blips in the post-February rally.

We also noted…

“US stocks may have head faked into a bull trap last week but VIX surged to
resistance. This thing can go either way, but I am in profit taking mode as noted
would be the case and it is summer, a time for your letter writer to try to relax a
little (easier said than done), knowing it has been a profitable year and Rome is
not built in a day.”

What the VIX is doing is breaking out of jail. People may say it has gone too far too quickly (esp. when viewing daily charts), but I think that this resistance break opens a door to the type of volatility seen in 2014, 2015 and early 2016.