FINANCIAL ICEBERG
Always consider hidden risks
​
 TECHNICALS
VIX and SP500:  At Crossroads? 
 February 18 ( From TradingView, CNN Money  )
If you would like to receive our free daily markets updates, please Sign-Up










​​The Situation

​

​​​​In times of almost zero confidence from investors and speculators, it is ​interesting ​to check the relationship between the VIX index and the SP500.

The spot VIX closed On February 17 at 22.31, well above the average ​long term​ volatility level​( the 200 DMA is at ​18.16 ) ​but ​coming from the highest level ​of the year ​reached on February 11 at ​30.90. ​The Market shift from a Panic stance to a Neutral very quickly.​

One interesting technical factor is that the VIX is testing its Daily Support Trendline at a time when we have the Mighty SP500 Index near testing a resistance trendline.​​ ​ ​( See 1st chart below - red trendlines - ellipses) 

​​​​At those level, there is Fear being priced into the Market and into the Market Participants sentiment.
The ​​​​ Fear and Greed Index from CNN Money as of February 17 is at the Neutral Fear Level but not fully reflected by the VIX Index...
​
​But the most interesting factor s is that since the VIX broke a Monthly Major Resistance Trendline from a Falling Wedge Pattern that started back in December 2014.​, market is in disarray.
​ ​( See 2nd chart below - bottom of the chart - red trendlines - ellipse)

​

Also observe that the SP500 index is broke a Monthly Major Support Trendline from that started on November 2012.
​( 2nd Chart Below - Blue Trenline - Ellipse). 

​​

​​​


VIX and SP500:  At Crossroads?     $SPY, $VIX Trading #vix #SP500 #stocks










VIX Index (  Daily Candles - Bottom of the Chart )
7 DMA ( Blue Line )​
SP500 Index ( SPX - Daily BAR LINE - Top of the Chart )​


Financialiceberg.Com


VIX Index (  Monthly Candles - Bottom of the Chart )


SP500 Index ( SPX - Monthly BAR LINE - Top of the Chart )​


Financialiceberg.Com