FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
China ETF Volatility Index and SP500:  Still at Critical Level ​? 
 September 15 ( From TradingView, CNN Money  )
If you would like to receive our free daily markets updates, please Sign-Up




​​The Situation

​​​​In times of less confidence from investors and speculators, it is
​interesting to check the relationship between the ratio of the
​CBOE China ETF Volatility Index to the ​VIX index compare to
​the Mighty SP500.


Usually, when we have a spike in this ratio near or over the
​1.88 treshold
( See chart below - Amber Trendline and Grey Vertical Lines),
quite often, we have a correction in price from the SP500... It did again on August 3 when we had the 7 DMA ( Day Moving Average ) turned lower on that ratio... And almost now...

Also observe that this ratio ( CBOE China ETF Volatility Index to the ​VIX ) is almost near the highest level of the past 3 years as shown by the chart below telling me that the level of speculation is still quite high....
​ 
Also interesting to note​​ the Fear and Greed Index from CNN Money as of September 14 is at the Extreme Fear Level still.

​​But the most interesting technical factor is that we are in near the major support trendline from a pennant in the Mighty SP500 as shown by the chart below. ( See chart below - Bottom Panel - Red Trendlines )

​​​
China ETF Volatility Index and SP500: Still at Critical Level ​?    $SPY, $SPX, $VIX #Trading #Investing  #VIX #SP500

RATIO
​CBOE China ETF Volatility Index over VIX Index ( Top Panel )
​7 DMA ( Red Line )​

​​​SP500 Index ( SPX - Candles - Bottom Panel )​
Financialiceberg.com