Why the VIX High today is important

CBOE:VIX   Volatility S&P 500 Index
In my weekly analysis I always check the VIX for market timing. Last night during my Sunday video I noted the 27 level on VIX as key. This is the 50% Retracement of the late March rally in stocks (and all risk assets for that matter). To hold this level represents a potential turning point. Today's price action did the following; Opened above the level, pushed higher to set the new important high, and then closed back inside the 27 level. That makes today's VIX high of 31.60 all important for warning signs of a continued drop. Set your alerts accordingly.

Some recent history: The key VIX pattern that marked the bottom of the recent correction was the LOWER high on the VIX upon the 2/24 invasion of Ukraine. Though the stock market indexes ( S&P 500 and Nasdaq) made lower lows than January 24th the market did not price in more volatility . This divergence was a key factor in marking the bottom of the correction. (See March 15th Idea below)

"Be to others the person you needed to meet 10 years ago"

Discord Trading Community:
Twitter: @noroktrade

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.