CBOE Volatility Index - VIX - Daily versus SPY (S&P500 SPDR)
Sharp DROPS IN VIX have always been RE-TESTED
1. Look for sharp drop in VIX after a spike (Note: This is usually accompanied by a rally in stocks)
2. As soon as there is a 75% retracement of VIX, mark the level of stock prices.
3. The market will revisit this level once the short-covering euphoria is over.
4. See all examples. The last one completely blew up.
So, It looks like this is a very reliable read on VIX and what it means for the future of the S&P500.
Tim 3:03PM October 21, 2014
NOTE: THIS DATA IS ONLY THROUGH YESTERDAY'S CLOSE - FOCUS ON THE OLD SIGNALS
Sharp DROPS IN VIX have always been RE-TESTED
1. Look for sharp drop in VIX after a spike (Note: This is usually accompanied by a rally in stocks)
2. As soon as there is a 75% retracement of VIX, mark the level of stock prices.
3. The market will revisit this level once the short-covering euphoria is over.
4. See all examples. The last one completely blew up.
So, It looks like this is a very reliable read on VIX and what it means for the future of the S&P500.
Tim 3:03PM October 21, 2014
NOTE: THIS DATA IS ONLY THROUGH YESTERDAY'S CLOSE - FOCUS ON THE OLD SIGNALS
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Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
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.