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The VIX/ Gold Correlation US Dollar and SP500: Still Expecting High Volatility Ahead ?
Feb 9 ( From Stockcharts )
Feb 9 ( From Stockcharts )
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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 Mighty US Dollar (USD-DXY) and SP500 Index.
As shown by the charts below, this correlation tells that the risks have just 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 near 0.70 on February 5 and
VIX still over 14, indicating still high volatility ahead...
Observe the Broken Support Trendline in a Downward Channel for the US Dollar ( broken on the upside ).
See first chart below.
Last time the US Dollar Index was at that level was in September 2003...
SP500 index is having a triple top pattern at the 2064.5 level.
See 2nd chart below...
In these still 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 just 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 near 0.70 on February 5 and
VIX still over 14, indicating still high volatility ahead...
Observe the Broken Support Trendline in a Downward Channel for the US Dollar ( broken on the upside ).
See first chart below.
Last time the US Dollar Index was at that level was in September 2003...
SP500 index is having a triple top pattern at the 2064.5 level.
See 2nd chart below...
The VIX/ Gold Correlation US Dollar and SP500: Still Expecting High Volatility Ahead ? $SPY, $SPX, $ES_F, $VIX, ,
$GLD, $GC_F, USDX
CORRELATION
VIX ( Top Panel )
VIX over Gold Correlation ( Middle Panel )
SP500 Index ( Bottom Panel )
VIX ( Top Panel )
VIX over Gold Correlation ( Middle Panel )
SP500 Index ( Bottom Panel )
CORRELATION
VIX ( Top Panel )
VIX over Gold Correlation ( Middle Panel )
US Dollar Index ( DXY - Bottom Panel )
VIX ( Top Panel )
VIX over Gold Correlation ( Middle Panel )
US Dollar Index ( DXY - Bottom Panel )
