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Volatility S&P 500 Index
Long

VIX going higher: Sector Rotation Underway

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VIX is the tool I use for market timing. It tells us a lot. When it spikes to a Resistance (often 50% of the last major high) that tends to be a market bottom. But when you see what it is doing the last few weeks: Closing sustainably higher each bar... you know the market is pricing in more volatility.

VIX is known as the "fear index" and you can extrapolate that out to see that fear is increasing. The VIX is also the most forward looking indicator I have found for the stock market. All signs point to more broad market downside.

Another thing going on in context is a clear Sector Rotation. I noticed this last week but today's look at the Sector ETFs make it more clear. Not everything is down; XLP and XLU are up even as SPY makes new lows. What this tells me is that investors are fleeing into "quality" stocks with low volatility and that pay dividends.

I'm currently sitting in cash, waiting for opportunities, and hedged some of my long term tax advantage accounts in SH
norok
Wizard
"Be to others the person you needed to meet 10 years ago"

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Beyond Technical AnalysisSPDR S&P 500 ETF (SPY) VIX CBOE Volatility IndexXLPXLU

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Beyond Technical AnalysisSPDR S&P 500 ETF (SPY) VIX CBOE Volatility IndexXLPXLU
norok
Wizard
"Be to others the person you needed to meet 10 years ago"

Discord Trading Community: discord.gg/eDfhKvS5AC
Youtube: youtube.com/c/NoroksNotepad
Twitter: twitter.com/noroktrade
Also on:

Related publications

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.