Always consider hidden risks
China ETF Volatility Index and SP500: Still at Critical Level ?
October 28 ( From TradingView, CNN Money )
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In times of full 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 September 16 and 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 October 27 is at the Greed Level still.
But the most interesting technical factor is that we are testing the major resistance trendline that started back on December 16 2014 for the Mighty SP500 as shown by the chart below.
( See chart below - Bottom Panel - Red Trendline )
China ETF Volatility Index and SP500: Still at Critical Level ? $SPY, $SPX, $VIX #Trading #Investing #VIX #SP500
CBOE China ETF Volatility Index over VIX Index ( Top Panel )
7 DMA ( Red Line )
SP500 Index ( SPX - Candles - Bottom Panel )