Always consider hidden risks
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
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 )
VIX Index ( Monthly Candles - Bottom of the Chart )
SP500 Index ( SPX - Monthly BAR LINE - Top of the Chart )