I'm a little late pointing this out but just something I'm watching is SPX - volatility movements.. The gray lines here are times I noticed where the prev 10d correlations between SPX and volatility products were all relatively strongly positive. When the price of SPX and the price of volatility move up together in an uptrend it has historically been a warning...
Imo this could be another indication of a topping pattern. Keep in mind that the majority of stocks are owned by "big players" who tend to buy in large chunks on high volume days.
70% of stocks in the S&P have been traded between the blue VA lines at any given point in time. When the high VA line flattens out and the low VA line declines while stocks are still...
I think it's pretty clear we broke the trendline that started back in March 2020 when the FED created the CPFF and MMLF and announced its support for covid. Also notice how during the trend even when we've broken down below the 50d we saw a quick pop and rally which hasn't happened the past week. If we don't get a strong bounce soon I'm guessing we'll test the...
A lot going on here but basically market breadth is deteriorating. Less than 50% of stocks are now above their 200d & 50d moving average. Advance-Decline line and volume has been flat for months. We've never stayed in an uptrend when the McClellan Summation Index (bottom pane) is negative for this long.. Just seems insane to me that people are bullish rn. Idk...
d1-invdn-com.akamaized.net this link can explain the implied correlation indices (ICJ, JCJ, KCJ) in detail better than I ever could but essentially they measure the correlation between the implied volatility /prices of options on an S&P 500 index like $SPY and the IV/prices of options on the individual components in the SPX . The way I see it it is a measure of...
