RVX Resistance...

Anyone trading options knows how important volatility is.  That's why I watch the VIX, pretty much every day.  If you're not familiar with the fix, here's a nice article that gives a brief but accurate description.  The counterpart to the VIX, representing implied volatility for the RUT, is the RVX.  Since I trade the RUT regularly I also keep a close eye on this.  Take a look at the recent chart:

While it's debatable whether conventional charting techniques are applicable to the RVX, this is at least interesting.  You'll notice here that five times in the last 3 or 4 weeks, the RVX has pressed up against a resistance level at about 58.  Further, you can clearly see how it has ranged in between the clearly defined lines for several weeks.

It was convincing to see it hit again yesterday and cooperate with the 58 level.  Who knows what will happen next, but I wouldn't be surprised to see it drop down to the support level, or thereabouts.  Whether technical analysis works or not on the VIX and RVX may be uncertain, but I will continue to monitor it and respect the points of resistance and support.

Good Trading...