VIX Spike vs VIX Swell

Thanks for sharing this chart! We've added it to Editors' Picks. Also we just recently you're John from Twitter! Hey 👋

Thank you so much! I've been considering a username change to match Twitter. Maybe it's time :)

I'm sorry but I'm not seeing any correlation between the VIX spiking and the market continuing to move-up. Each of the peaks of VIX spikes roughly align with a bottom in the market. And the base prior to a spike in VIX roughly lines up with a top in the market. I think this 'swell' vs 'spike' and any 'correlation' with different moves in the market has just been imagined. Perhaps the problem is in not understanding what the VIX is - a measure of the predicted future movement of the market, based on the price of out-of-the-money options.

Technical analysis is certainly open to interpretation, more art than science.

excellent post

Thanks, I appreciate that.

Makes good intuitive sense John. Especially the market moving higher once the VIX spikes to a high. I interpret this as the green flag to jump back in because the momentary market selling pressure has subsided.
When the VIX swells slowly or gradually drops it is more of a business as usual signal.
Very interesting take on the VIX / Market interaction.
Thanks for sharing.
GJ

Thanks Jim. Up until recently, I haven't fully appreciated the VIX. The technical analysis journey is never ending...

I know you are sharing from Cramers show, thanks for that. As others mentioned and in my opinion the VIX is a bit more complex and this is a bit of an oversimplification. With that said, the Vix has just spiked and seems to be now swelling =D. I Just hope for a crash!

Thanks, I appreciate your perspective.