DanV

VIX Index - (so called FEAR INDEX)

Short
CBOE:VIX   Volatility S&P 500 Index
470 views
1
In order to answer the question of Market direction over the next week or so or perhaps little longer I think this index can help as part of the co-relationship analysis. It is known fact that whilst this Index continues to decline (possibly heading to 13 level), the Equities in general will continue to rally. Whilst Equities continue to rally, currency pairs like EURUSD , GBPUSD etc will continue to gain and Dollar Index decline. The relationship between Equities, Dollar Index & Currencies is not 100% but close for our consideration. Also it is important to recognise that some times Equities lead and at other times it follows the Currencies at major turning points.

Comments

What about 30 year treasuries? They are still higher. You need all three; US Dollar down, 10 to 30 year bonds in negative direction, and the VIX headed in negative direction, to confirm + risk on trade. You have two of three. Dollar and VIX. This was the case before US elections.
Reply
DanV QuantitativeExhaustion
JR, I am surprised, didn't expect you to check it out so soon. Anyway do not normally look at the 10 & 30 yrs Treasuries. I have heard about it's correlation to the Market so I will take a look later.
Reply