VX Paths Ahead of FOMC

VX will be very important to monitor during today's volatility. For a basic short term view, I think this chart will work well. For the center line in the sand we have the 19.20 level. We also have some shorter term trendlines along with some more major support and resistance.

So we can just look for VX to break or come into these areas. For now, if VX remains below 19.20 and has a trend break to the downside, I'd expect bullish action on equities and for VX to head back to 16.45. Otherwise if VX can reclaim 19.20 and sustain a breakout, I'd expect it to hit the 22.60 area.

Major resistance: 22.60
Major support: 16.45
Middle: 19.20