Always consider hidden risks
The VIX/ Gold Correlation US Dollar and SP500: Higher Volatility Ahead ?
December 10 ( From Stockcharts )
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In these too complacent times, it is interesting to look the behavior ( correlation ) of the VIX and the Gold in relation to the Mighty US Dollar (USD-DXY) and SP500 Index.
As shown by the charts below, this correlation tells that the risks have not been 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 near 0.75 on December 8 and VIX was around 14, indicating more volatility ahead...
Observe the rising wedges for the US Dollar and SP500...
See charts below...
The VIX/ Gold Correlation US Dollar and SP500: Higher Volatility Ahead ? $SPY, $SPX, $ES_F, $VIX, ,
$GLD, $GC_F, USDX
VIX over Gold ( Top Panel )
SP500 Index ( Bottom Panel )
VIX over Gold
( Top Panel )
US Dollar Index ( DXY - Bottom Panel )