the VIX is re-testing the recent wedge break. bull-case would be another, much lower re-test down the line as noted following that last wedge break-out and first re-test while the bear case (for equities) would be that the VIX moves sharply higher next week, similar to the price action that immediately followed that first re-test of the last falling wedge breakout. personally, i’m going home short over the weekend but and plan to continue to scale in short next week ONLY on additional weakness in the market. many experienced traders prefer to average up on winning position, rarely averging down on losing positions as is common with retail investors/traders. i can’t say that i never add to, or scale into, a losing position but as a general rule, i usually try to avoid doing so.
