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VIX             has had almost no reaction to the latest correction in the markets which is unusual. Complacency in the marketplace could mean lower prices ahead.
Well VIX is dubbed fear index. Low VIX values during correction could suggest little fear. That goes hand in hand with irrationality and exuberance.
Our view is that the market will at least hit all time highs before a major correction. Looking at this chart, it appears that there is a possibility that the all time highs on SP500 will be broken, with a nice pop to the upside, into which the smart money will unload. If VIX is truly showing fear levels, then the market is about to start entering the last stages of a "bubble"
Every idea about the market for me needs to have price confirmation. I believe there is room to the upside but I also feel that shorting oportunities are to be searched for and a break under 140 in SPY can lead to a lot of downside action with much more reward than any long right now.
KalleRaus KalleRaus
Correction: break under 135 in spy, 61 in qqq
It's good to read a nice opinion about this chart TIm! There seems to be a lot of bullishness in leading stocks so the relief rally could continue no doubt. Well see. The correction though looks to be in the cards next year.
France 10 year bonds hit 6-7% and US Debt Ceiling once again creates a sell-off.. Be ready
I was going to make a similar post, but you have done such a nice job here and saved me a lot of time. Very well done. I think that the low level of VIX is a precursor to a big move, but I'm waiting for a few other indicators to line up. The low VIX might be the result of people selling call options to hedge their long positions and from that perspective this setup could be bullish. We can also check open interest in options to see if there is already a large hedge position in place through PUT ownership. If hedges are already in place AND if this recent decline in price made nervous longs "sell calls" to help fund their put purchases, then we could actually be in position for a relief rally FIRST. The relief would come from longs buying back their shorted calls to prevent from losing their long positions. Once I see a "short squeeze rally" then I could imagine that we could see a sharp correction.
VERY nice chart... I like it
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