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
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Wed. Oct. 21 @ 2:00 pm ET ~ Beige Book Report
* Thurs. Nov. 5 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
* Fri. Nov. 6 @ 8:30 am ET ~ Employment Data
* Thurs. Nov. 12 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Tues. Nov. 17 @ 8:30 am ET ~ Retail Sales Report & Core Retail Sales Report
* Wed. Nov. 25 @ 2:00 pm ET ~ FOMC Meeting Minutes
* Wed. Dec. 16 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
*** Click here for link to Economic Calendars for all upcoming events