The S&P 500 Volatility Index ($VIX) fell 11% after sinking to an intraday low of 15.11. Fresh and upper support at 15.50-15 was breached but held on the close back below the 50/200-day moving averages. Continued closes below the 15 level would be an ongoing bullish signal with additional weakness towards the 14-13.50 area and September lows.
Lowered resistance is at 16-16.50 followed by 17.50 and the 50-day moving average. Any move above the aforementioned levels over the near-term would be a cautious signal.
RSI is in a downtrend and is on track to test September support at 40. A move below this level could lead to a retest towards the 35-30 area and the July low sandwiched in between. Resistance is at 50 and prior support from earlier this month.