Relationship of the VIX and S&P 500. Key areas to watch on are 44-37 range on the VIX and on the RSI 51. We will not see a sustained rally on the S&P500 until the Vix RSI fails through 51 while the Vix capped under 37 level. The market will need some time to work off the volatility surge if this Asian contagion is actually over. However the market should not be trusted as long as the VIX remains above 21 in the after math of the most recent dump last week.
There is no reason to rush in for discount longs as we can see when the VIX does finally fail you will have plenty of time to participate in the ensuing trend. For now caution is advised as long as the VIX and its RSI remain at extremes until set levels are breeched downside of the RSI reading. The market will be hard pressed to get through the range on the high side very easily after 9 months of distribution at ATH's.
kazo dropping sick vix analysis half a decade ago w/ this one - as relevant and valuable as ever in 2020 & made in 2015
Killy_Mel
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whoa) thats a funky chart)
although nowadays vix is not much of a predicter... it will decreace overtime - however I like the idea of using technical indicators on it...)
Kazonomics
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The VXX will decrease overtime not the VIX. The VIX is and has been one of the most reliable components to analyze S&P500.
IvanLabrie
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Nice, some different applications of Vix. I'll experiment some more.
I posted an idea using Vix to signal trades but not with RSI.
Art579549
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Amazing wor!
SmartMoneySoros
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incredible how i could see the short from a mile away even with all the graffiti on this chart lol...nice though maybe i should look through ideas more often
SmartMoneySoros
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@SmartMoneySoros, oh shit i see one is sp and one vix lol duh ok