Following from my last 3 posts tonight all on the S&P - see links below (Elliot wave counts, divergences with Put-to-Call Ratios and NYSE Advance-Decline Line).
This post now examines the S&P Cash Index with the INVERTED VIX.
So as INVERTED VIX goes down here it means the options market is expecting increased volatility - usually indicative of creeping fear and indicating that the underlying S&P Index could be headed down.
Several interesting observations here to note:
1) While the S&P made a high on June 8TH, INVERTED VIX made its high 3 days earlier on June 5th.
2) While the S&P made a high on July 6th, INVERTED VIX made its high 4 days earlier on July 2nd.
3) While the S&P made a slightly new high today July 13th, INVERTED VIX made its high 3 days earlier on July 10th.
4) While the S&P made a slightly new high today July 13th compared to June 8th, the INVERTED VIX made a lower high on July 10th as opposed to its last high on June 5th.
5) While the S&P made a higher high today July 13th, the July 10th INVERTED VIX high was LOWER than the INVERTED VIX's July 2nd high.
6) INVERTED VIX highs seem to precede turning points in the S&P by 3 to 4 days and thus are leading the way to future direction of the S&P.
All in all the above are confirming the previous messages from the CBOE Total Put-to-Call ratio and NYSE Advance-Decline Line as well as the Elliot wave counts (see posts below) which is that the VIX is going higher and the S&P is going DOWN.
Cheers!
Cyrus
This post now examines the S&P Cash Index with the INVERTED VIX.
So as INVERTED VIX goes down here it means the options market is expecting increased volatility - usually indicative of creeping fear and indicating that the underlying S&P Index could be headed down.
Several interesting observations here to note:
1) While the S&P made a high on June 8TH, INVERTED VIX made its high 3 days earlier on June 5th.
2) While the S&P made a high on July 6th, INVERTED VIX made its high 4 days earlier on July 2nd.
3) While the S&P made a slightly new high today July 13th, INVERTED VIX made its high 3 days earlier on July 10th.
4) While the S&P made a slightly new high today July 13th compared to June 8th, the INVERTED VIX made a lower high on July 10th as opposed to its last high on June 5th.
5) While the S&P made a higher high today July 13th, the July 10th INVERTED VIX high was LOWER than the INVERTED VIX's July 2nd high.
6) INVERTED VIX highs seem to precede turning points in the S&P by 3 to 4 days and thus are leading the way to future direction of the S&P.
All in all the above are confirming the previous messages from the CBOE Total Put-to-Call ratio and NYSE Advance-Decline Line as well as the Elliot wave counts (see posts below) which is that the VIX is going higher and the S&P is going DOWN.
Cheers!
Cyrus
