- We are seeing several days of leveling out (Aug 11-26).
- Followed by a green candle and a good candle.
- Need one more follow through day and as of 8:46am premarket is indicating that we will see another candle today.
- There is also a clear cross over in the
- just coming off the oversold range
Now we could see a little head fake like Aug 19-26, but this chart clearly looks to me like a decent correction is inbound for the S&P . This indicator does not let me know how big.
I get some questions about using VIX / SPX as an indicator. VIX is not an "inverse" of SPX . Yes they are generally inversely correlated ( SPX up, VIX down), but it is more complicated than that since VIX is a future contract based on expected . What is important is that VIX rises exponentially as the SPX approaches a correction. What you see in this indicator is that when VIX is rising faster than SPX you will see a rise (green candles) in the chart.
I have 2 different markups of the S&P and both are show the S&P at the top of a .
S&P - Option #1
S&P - Option #2
A 3rd view of the S&P