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The VIX/ Gold Correlation US Dollar and SP500: Expecting Higher Volatility Ahead ?
 July  20 ​( From TradingView )
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The Situation

​​​In these still too complacent times, 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 at the 0.70 zone on July 17 and
​VIX ​at 11.95, indicating higher volatility ahead...

Observe the US Dollar two previous peak at the Resistance Trendline; one was back on April 13 and the other was on June 1. VIX/GOLD correlation was then near the critical zone of  0.70.
In both cases,​ USD started a huge move in ​a higher Volatility set up; looks like the same pattern to me today. ​​See first chart below - Red and Grey Trendlines.

​​
​The US Dollar Index is within an uptrend channel and near the Resistance Trendline that started on March 13... See first chart below - Channel - Red Trendline

For the SP500 index, it started a Bullish Trend within a Rising Wedge that started back on March 11 and already at the Resistance Trendline . See 2nd chart below - Red Trend  Lines...

​​So both the US Dollar Index (DXY) ans the SP500 are within a technical set up that call for a  higher Volatility environment as history suggest.





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

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 )

Financialiceberg.com
Financialiceberg.com