The VIX index has spiked higher again on inflationary worries.

Technicals

The VIX index has spiked again on inflationary worries. RSI has spiked to 80.2 on the 4 hourly but still remains neutral on the daily timeframe. It is very possible that the VIX could continue higher towards the 32.00 - 34.00 region as the US federal reserve are due to speak later in the week with a forecasted 0.5% base rate increase. Taking short positions must be done with caution as the index can shoot higher in a matter of hours. Towards the downside, initial targets/support sits at 30.00 followed by 28.40. Towards the upside, resistance sits at 34.02. A break above here could be dangerous.