The VIX Starts to Rumble on the Upside

Since Tuesday's low at 12.12, the VIX has climbed to a high of 16.14, up nearly 34%.

More importantly, from a technical perspective, the VIX has climbed above-- and continued higher from-- its nearest-term resistance line (March-July) at 15.00, and appears poised for upside continuation towards a challenge of its 2-year resistance line, now at 18.60.

My suspicion is the VIX is reacting to 1) the fact that all of the action in the SPX for the month of July represents a Top Formation, and 2) fear that the Fed is on the verge of "falling behind the curve," which will result in an irretrievable loss of investor confidence.

If my perceptions about the underlying psychological drivers of the SPX and VIX are accurate in the slightest, then the VIX has a long way to travel on the upside in the days and weeks ahead.