VIX and VXN chart update

Today CBOE S&P 500 Volatility Index (VIX) gave us a small but significant breakout of its 4 month falling wedge formation (A).  Last time in early August, a smaller falling wedge formation was broken out to the upside (B), and the subsequent rise turned out to be continuation of a larger 4 month falling wedge formation.  This confirms the bearish outlook of US equity markets in the short and intermediate term.

Similiarly, Nasdaq Volatility Index (VXN) is at the tip of its falling wedge formation, it's not yet broken out reflecting that relatively smaller fear investors have regarding Tech sector, and indicating Tech remains a strong sector in overall economy.