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The VIX/Gold Correlation US Dollar and SP500: Higher Volatility Ahead?
 November 23 2016 ​( From TradingView , CNN)
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​​​
​In these greedy times (good to know that​​ the Fear and Greed Index
​from CNN Money is coming from the Fear Zone (US Election-November 8)
​to the Greed Level now at 67 (highest reading post election).
It is interesting to look the behavior ​(correlation) ​of the VIX and the
​Gold in relation ​to the US Dollar ​​(USD-DXY) ​and the Mighty ​SP500 Index.


​​​​As shown by the charts below, this correlation tells that the risks have
​not started ​to be fully priced into the foreign exchange market yet in terms
​of volatility: expect more volatility in the US Dollar and SP500 in the next few sessions...​​


​​​​VIX/GOLD correlation getting over the 0.70 zone on November 22 ​2016 (See first chart below - Middle Panel - Blue area) and VIX ​at 12.41, well below its 200 DMA (Day Moving Average) at 15.25 and near testing the Major Support Trendline, ​indicating higher volatility ahead as history suggest...  ​(See first chart below - Top Panel - Yellow Trendine)

​​​The US Dollar Index is within a Huge Daily Uptrend Channel (See first chart below - Bottom Panel - Uptrend Channel) but most importantly broke a Major Resistance Trendline that started on March 13 2015 (See first chart below - Bottom Panel - Thick Yellow Trendline - Ellipse): Breaking back that level (now becomes Support)  will increase tremendously the Volatility of all US Financials Assets. 

​For the SP500 index, it started a Bullish Trend from the post-US Election panic on November 8 2016 to make a new high ever this week
 (See 2nd chart below - Bottom Panel - Ellipse) on Trumpification of Financial Markets. It is still within a Daily Major Rising Wedge Technical Pattern that started back since May 20 2015 ( previous major top for the SP500 Index) and now testing the Resistance side of it (See 2nd chart below -  Bottom Panel - Yellow Trendlines) Seasonality is toward a bullish mode til the beginning of December.

​​Making the US Dollar Index (DXY) Great Again seems a good thing; but adding some US Dollar shortage worldwide could become my Canary in the Coal Mine:  ​Haven’t We Done This Before?
​​So both the US Dollar Index (DXY) and the SP500 are within a technical set up that call for a  higher Volatility environment as history suggest according to the VIX/GOLD correlation.






The VIX/Gold Correlation US Dollar and SP500: Higher Volatility Ahead? $SPY, $SPX, $VIX, , $GLD,  USDX #Trading #vix  #gold #SP500 #moments


VIX ( Top Panel )​
CORRELATION​
VIX over Gold Correlation ( Middle Panel )
​​SP500 Index ( Bottom Panel )
VIX ( Top Panel )​
CORRELATION ​
VIX over Gold Correlation ( Middle Panel )
​​US Dollar Index ( DXY - Bottom Panel )

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Financialiceberg.com