$VIX 5EMA with $SPX

CBOE:VIX   Volatility S&P 500 Index
299 3 9
The idea of this chart is that when the $VIX 5EMA gets down into the lower two horizontal yellow lines, it's time to get ready for some kind of market reversal. This chart has worked well for quite a long period of time in indicating when the markets were getting a little too overheated and were prime for a pullback of one degree or another. However, it should be obvious that in June and July the 5EMA dropped lower than the two horizontal yellow bars without predicting a pullback. Based on the failure of this setup back in June and July, I could adjust those two lower lines down a little, but I'm not going to because this chart worked very well in late September ahead of the decline into the October lows.

Here's how I'm interpreting this chart now: The markets are getting stretched, The RSI on $SPX             has been above 70 various times over the past 10 or so sessions which indicates an overbought market. And we're seeing weakness in the Summation Index. Nothing major but still weakness in the Summation Index is never a good thing.

For the moment, and based on the way the market has been acting lately, I would have to expect that the $SPX             will push higher and this, in turn, will push the $VIX 5EMA lower and perhaps through the the bottom yellow line. If that bottom yellow line does in fact get pierced, then I'd be on the lookout for some kind of give back to start within a few sessions.

And I could be completely and absolutely wrong.

Be careful and GL.
Need to update the Vix part of this chart. Thanks!
Just look at the VIX future srpead -
It is nearing a level to get long the front month, short the back. I would wait until the holidays are over though
Another smart guy told me to watch $NYMO yep... thanks!
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out