Always consider hidden risks
VIX and SP500:  From a Fearless Market to Pricing Panic ​? 
 August 25 ( From TradingView, SPYETF, CNN Money  )
If you would like to receive our free daily markets updates, please Sign-Up

​​The Situation

​​​​In times of almost zero confidence from investors and speculators, it is interesting
​to check the relationship between the VIX index and the SP500.

The spot VIX closed On August 24 at 40.74, well above the average
​long term​ volatility level​( the 200 DMA is at ​15.11 ) ​but ​coming from the
​almost the lowest level ​of the past year ​reached on August 5 at
​10.88 ( from a low ever reached on​July 3rd 2014 at 10.28 ).
The Market shift from a Fearless to Panic very quickly.​

​​Take note that seasonalities was for a stronger VIX getting into August.
( Seasonalities - see 2nd chart below ).
​​At those level, there is Extreme Fear being priced into the Market and into the Market Participants sentiment.
The ​​​​
Fear and Greed Index from CNN Money as of August 24 is at the Extreme Fear Level and also fully reflected by the VIX Index...

​But the most interesting factor s is that the VIX broke a Major Resistance Trendline from a Falling Wedge Pattern that started back in December 2014.​​ ​( See 1st chart below - bottom of the chart - red trendlines - ellipse)
Also observe that the SP500 index is broke a Major Support Trendline from a Rising Wedge that started on February 25 2015. ​
( First Chart Below - Bottom Blue Trenlines ).


VIX and SP500: From a Fearless Market to Pricing Panic ​?    $SPY, $VIX Trading #vix #SP500 #stocks

VIX Index (  Daily Candles - Bottom of the Chart )
7 DMA ( Blue Line )​
SP500 Index ( SPX - Daily BAR LINE - Top of the Chart )​
VIX Index ( Daily Black Line )
VIX Index (  Monthly Candles - Bottom of the Chart )

SP500 Index ( SPX - Monthly BAR LINE - Top of the Chart )​