Since my post of June 8th (wherein I noted that the SPX:VIX ratio had overshot its technical resistance limit, and price and Momentum had reached all-time record highs), price has been fluctuating, primarily above the 150.00 level, currently near-term support, as shown on the following 20-year Weekly ratio chart.
As long as price remains above 150.00 I'd say that buying will re-enter the SPX and push price even higher on this ratio. We'll see whether Momentum confirms, if such a scenario occurs...and, if it signals support for any sustained buying above resistance at 180.00.
The next support levels are at 140.00 and 110.00, if we see selling in the SPX. Either way, we may see a continued consolidation until price breaks and holds either above 180.00 or below 150.00...or, even some pretty large volatile swings in between 180.00 and 110.00, until a break and hold pattern is established, one way or the other.
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