It is time to check the ratio SPX/VIX values, which appear currently at the critical level of 160+, which served in the past (2007 peak) as an early warning of the approaching top (in contrast, the 2000 peak followed an 80+ ratio). A consistent long term low may be defined by 18, whereas "mild" corrections can be expected within a ratio range of 80 to 160 approximately.
Comments
Fomenka
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Could you explain how do you create this SPX/VIX combined indicator?
cfetrader
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Thank you for your interest in the chart. I simply type SPX/VIX in the relevant combine/add symbol box. It is very easy. That ratio must be carefully watched around the levels of 174.5 (it could go up to 190 however; depends on the rise intensity; SPX targets are 2138, 2150 & 2248).