I last wrote about the SPX:VIX ratio in my post of January 31.
The SPX continued its plunge (that began on January 30) and closed near its low on Friday (spiking the VIX to a new daily swing high), as noted in this post.
The following monthly chart of the SPX:VIX ratio shows that price closed well below, what was, major support of 200 and is hovering just above the 150 Bull/Bear Line-in-the-Sand or "critical mass."
Furthermore, the momentum indicator has fallen below the zero level, hinting of further equity weakness to come in the longer term.
If this ratio drops and holds below 150, no doubt we'll see an acceleration of equity selling and much higher spikes in volatility. In any event, we'll continue to see some wild swings as long as this ratio stays below 200.
As well, watch for a bearish moving average crossover of the ratio 5MA & 20MA on the following monthly chart -- which shows the SPX in the upper half and the SPX:VIX ratio (in histogram format with these 2 moving averages) in the lower half -- if the ratio were to drop and hold below 150, to confirm continued (and, potentially, panic) selling in the SPX.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
please read my full Disclaimer at this link.
UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Mon. Feb. 19 ~ U.S. markets closed for Presidents Day Holiday
* Wed. Feb. 21 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Wed. Mar. 7 @ 2:00 pm ET ~ Beige Book Report
* Fri. Mar. 9 @ 8:30 am ET ~ Employment Data
* Tues. Mar. 13 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. March 21 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts + @ 2:30 pm ET ~ Fed Chair Press Conference
* Wed. May 2 @ 2:00 pm ET ~ FOMC Announcement
*** Click here for link to Economic Calendars for all upcoming events