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The VIX/ Gold Correlation US Dollar and SP500: Expecting Higher Volatility Ahead ?
 October 8 ​( 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 below the -0.60 zone on October 7 
​and VIX ​at 18.40, near its 200 DMA ( Day Moving Average ),
​indicating higher volatility ahead...

Observe the US Dollar last previous bottom ( on September 17 2015 ) at the Support Trendline from a Wedge that started back from August 7 2015 ( First Chart below - Grey Lines - Bottom Panel ) ; VIX/GOLD correlation was then near the critical zone of  0-.60. In that case,​ 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 a Wedge and near the Support Trendline: Breaking that level will increase tremendously  the Volatility of all US Financials Assets. ( See first chart below )

For the SP500 index, it started a Bullish Trend within a Channel that started back on August 24 and already at the Resistance Trendline. Like the US Dollar, on September 17, it did reverse when we had the VIX/GOLD correlation near the critical zone of 0-.60. ( See 2nd chart below - Grey TrendLines. - Bottom Panel )

​​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 according to the VIX/GOLD correlation.





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


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