Always consider hidden risks
The VIX/ Gold Correlation US Dollar and SP500: Still Expecting High Volatility Ahead ?
Jan 20 ( From Stockcharts )
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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 0.75 on January 16 and
VIX still over 14, indicating still high volatility ahead...
Observe the rising wedge for the US Dollar
( broken on the upside ). See first chart below.
SP500 index is rebounding on the support trendline and the
150 DMA ( Day Moving Average ) See 2nd chart below...
Last time the US Dollar Index was at that level was in
The VIX/ Gold Correlation US Dollar and SP500: Still Expecting High Volatility Ahead ? $SPY, $SPX, $ES_F, $VIX, ,
$GLD, $GC_F, USDX
VIX over Gold ( Top Panel )
SP500 Index ( Bottom Panel )
SP500 Index 150 DMA ( Day Moving Average - Bottom Panel - Blue Line )
VIX over Gold
( Top Panel )
US Dollar Index ( DXY - Bottom Panel )