Getting divergence between these 2 indexes and crossing below zero line or just above the zero line we get a heads up kind of signals for higher volatility in SPX. Median of 44 days and Average of 45 days to pullbacks. Median & Average pullback of 9.9 % & 10 %.
DATA: - 29 day to 11% pullback - 71 days to 4% pullback -58 days to 10% pullback -39 days to 15% pullback - 3 day to 5% pullback -Mid of 4% pullback -1 day to 3% pullback - 92 days to 12% pullback - Double: 44 & 6 days to 20% correction -62 days to 12% pullback -90 days to 8 % pullback. -------------------------- 0.01 readings -Zero Days to 10% pullback -69 days to 6 % pullback -3 days for a 3% pullback -49 days for a 6 % pullback
I have been thinking the exact same thing. I've contemplated shorting the Russel for a while now. I wanted to maybe let S&P 500 reach 4400ish range before making the move though. May 26 makes perfect sense to me for both outcomes to come to fruition. Thanks for the great analysis and for validating my established bias.
samitrading
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@j2goldsmith, Hey bud, glade you liked it. Lets see if this plays out as every one is biased toward a pullback in market right now, but bulls are
running the show no bears showing up in the arena ;-) .