VIX/SPX indicator showing possible change of direction in S&P

My VIX / SPX indicator is really coming alive this week. It has the same look as August 21 and the following spike in September.
- We are seeing several days of leveling out (Aug 11-26).
- Followed by a green doji candle and a good bullish candle.
- Need one more follow through day and as of 8:46am premarket is indicating that we will see another bullish candle today.
- There is also a clear cross over in the MACD
- RSI 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 volatility . 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 rising wedge .
S&P - Option #1

S&P - Option #2

A 3rd view of the S&P
Comment: This is looking confirmed this morning. Lets see if it follows through today.


Can’t wait to ride this wave!
+4 Reply
I think Friday VIX crush kept this from happening today. Looking forward to early next week.
+1 Reply
Is VIX/SPX actually VIX divided by SPX? Can you elaborate on where this number is coming from?
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