Always consider hidden risks
SP500 Volatility Rising ?
September 24 ( From TradingView )
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The Currency market is giving the
signs of a turnaround into the Volatility
of US Stocks again...
The US Dollar tested the 50 DMA ( Day Moving Average ) on September 23
and was unable to close above it. It started to weaken and bring with it
a rise in Emerging Stock Markets Volatility as shown by the chart below.
US Dollar Index ( Candles - Top Panel )
CBOE Emerging Markets ETF Volatility Index ( Bar - Bottom Panel )
SP500 Index (Bar Chart at the Top )
US Dollar Index ( DXY - Area Chart at the Top )
US Dollar Index Volatility ( DXY - Blue Line)
CBOE Interest Rates Volatility Index ( White Line )
SP500 Index Volatility ( VIX - Yellow Line at the Bottom )
CBOE ETF Index Volatility ( VXEFA -Amber Line at the Bottom )
And as the sum of all fears : taking the Historical Volatility of the US Dollar Index (DXY) combined with the US Interest Rates Volatility Index shows that the VIX Index showing a lot of complencency for the SP500 as shown by the graph below...
But what the market participants are missing completely was that volatility is already on the rise for Emerging Markets and US Bond as shown by the chart below...
SP500 Volatility Rising ? $SPY, $VIX #VIX #SP500
In fact, to see it more clearly, each time lately the US Dollar Index have been on a corrrection phase, volatility of Financial assets picked up. ( See chart above - Vertical Grey Line ).
Rising Volatilites usually is bearish on Equities...