SLOPolarBear

VIX/SP500 Price Action Air Pocket - Heavy Volatility Coming

Short
SLOPolarBear Updated   
TVC:VIX   Volatility S&P 500 Index
if you pull up a 2-day chart of the VIX and analyze price action using a 200 period MA, you'll notice that price action NEVER creates a pocket of dead space between its moving average and the price action (see turquoise boxes), except prior to a period of major/increasing volatility. I've highlighted the present anomaly as well as the 2007-08 global financial crisis. You'll find the same anomaly prior to all major crashes (dot com bust, etc.) After examining numerous stocks using a daily chart and 200 period MA, I see a LOT of downside when the market eventually corrects. I suspect Feb/Mar 2020 is a preview of what is to come. I also recognize that quantitative easing has created tremendous upward momentum since it was first started in late 2008. The recent market sell-off is evidence that no amount of QE will prevent the market from attempting to revert to its fundamentals.
Comment:
11/2/2020 Stores in major cities are boarding up in anticipation of rioting/looting going into Election Day. This is a first in my lifetime. $VIX -- your response?
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