FINANCIAL ICEBERG
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 TECHNICALS
China ETF Volatility Index and SP500:  Still at Critical Level ​? 
 August 12 ( From TradingView, CNN Money  )
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​​The Situation

​

​​​​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 








RATIO
​CBOE China ETF Volatility Index overVIX Index ( Top Panel )
​7 DMA ( Red Line )​


​​​SP500 Index ( SPX - Candles - Bottom Panel )​


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