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gb50k
Jul 31, 2022 11:04 PM

SPX ~6000 if this time is not different 

VIX/VVIXTVC

Description

The SPX chart has 2 goals and one constraint:

  • Demonstrate the VIX / VVIX ratio as an inverse momentum indicator for SPX. The VIX is risk adjusted" by VVIX and the ratio is more useful than VIX alone. "Useful" is similar to 'Statistical Power' and means less data required to identify smaller changes amidst higher volatility.

  • Suggest that an ATH of SPX 6000 is "not unreasonable" considering the pattern and magnitude of prior large moves (corrections, bear markets, and very large dips)

  • . . . Unless this time is different.


Comments
rwoods187
You have a bullish setup here; clearly, the SPX is bearish and the vix bullish. There is a market liquidity issue here with a hawkish fed. This seems more like a dream than a reality until the FED pivots. Expect this dream to become a nightmare if Powell starts QT to steepen the yield curve. This will only put more pressure on a weakening market.
Cousin_Fat_Fat
Good Stuff!
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