From earlier in the past week, I noticed the following short term formation.
I have seen this waveform before, on an oscilloscope, in a lab when i was still a student.
An oscillation of increasing amplitude, which i modeled with the equation x*sin(x)
Practically speaking, it is not a sign of stability.
Similarly, over longer terms there are additional indications of potential instability.
The VIX (volatility index), AKA fear index, measures option activity and has also been building a similar unstable oscillation, with each progressive volatility spike getting larger and larger.
This has the resulting effect on the market.
Notice each sell off getting progressively larger and on bigger volume.
Buyer beware.
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