Check out the monthly and daily charts of VIX. put rsi, macd and adx on .. also check out the SPX chart.. on 10/11 when VIX was this low spx was 1554, yesterdays close 1423.57.. We are at an inflection point, either way market will break out, but chart favors to the downside.. My only doubt was on the weekly since the sell signal was not confirmed but on the monthly& daily on VIX it gave a short term sell signal.. Of course if oil tanks all bets should be off..
I put very little emphasis as a stock trader on the level of VIX, and imo doing technical analysis on VIX is close to worthless (although historical highs and lows are useful). The actual value is useful as an (stock index) options trader, but I don't see any value to the level as a stock trader. The two facts that are useful in general about VIX is that volatility tends to cluster, and that volatility is mean reverting. The level is arbitrary imo and it contains no more (predictive) information than looking at say the value of ES. nitro
Yesterday to the close I went thru this chart and got only time to post now. I am not a frequent poster.. We are at a major level, take it what it is..If oil were down the spx would be broken to the upside. I played it w/IBN and SAY openings that is it..
i watch the levels,i notice it's up a buck and the spus have a very narrow range, would that mean that option traders are betting down,is a buck a big move?
May I respectfully disagree with you? Please apply Bollinger Bands length 7, with 2 STDs width on daily VIX bars. Please also overlay it with something like FIBs levels on S&P daily and tell me what you think. It has been useful for me. Cheers, MAESTRO
It is strange isn't it as spx is not down that much (3-4 handles)but vix is almost at Wednesday's close..