Always consider hidden risks
China ETF Volatility Index and SP500: Still at Critical Level ?
August 12 ( From TradingView, CNN Money )
If you would like to receive our free daily markets updates, please Sign-Up
In times of less confidence from investors and speculators, it is
interesting to check the relationship between the ratio of the
CBOE China ETF Volatility Index to the VIX index compare to
the Mighty SP500.
Usually, when we have a spike in this ratio near or over the
1.88 treshold ( See chart below - Amber Trendline and Grey Vertical Lines),
quite often, we have a correction in price from the SP500... It did again on August 3 when we had the 7 DMA ( Day Moving Average ) turned lower on that ratio...
Also observe that this ratio ( CBOE China ETF Volatility Index to the VIX ) is almost at the higher level of the past 3 years as shown by the chart below telling me that the level of speculation is still quite high....
Also interesting to note the Fear and Greed Index from CNN Money as of August 11 is at the Extreme Fear Level.
But the most interesting technical factor is that we are in near the major support trendline from a rising wedge in the Mighty SP500 as shown by the chart below. ( See chart below - Bottom Panel - Red Trendlines )
China ETF Volatility Index and SP500: Still at Critical Level ? $SPY, $SPX, $VIX #Trading #Investing #VIX #SP500
CBOE China ETF Volatility Index overVIX Index ( Top Panel )
7 DMA ( Red Line )
SP500 Index ( SPX - Candles - Bottom Panel )