SPX is plowing through higher highs. It is a runaway train. Have you entered that train yet? You better enter it because SPX will soar!
But runaway trains have the fate of collapsing in on themselves. Their weight is too much for the foundation to sustain.
Not all is SPX. VIX is also attempting to measure the risk involved in SPX. And VIX is as bullish as it gets.
But not all is VIX. It is important to analyze the volatility of volatility. We are really entering inception levels here. Volatility is too low and too stable. It is as if it is pressured to make all-time-lows. With such a low VVIX reading, we can conclude that VIX is having no second thought on dropping even further.
Curiously, the VVIX/VIX ratio is a neat SPX tracker. I have posted about it ages ago.
So what can we conclude about volatility? Historically, similar volatility traps have lead to severe crashes in the stock market.
Will this time be any different?
So what is in for the future?
Perhaps an all-time high for SPX will come first. It is not that far...
Then, perhaps some SPX divergence against VVIX/VIX. SPX to move higher with VVIX/VIX moving lower. And then darkness.
Tread lightly, for this is hallowed ground. -Father Grigori
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Why is this period full of massive traps?
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How far needs SPX to grow for it to avoid a massive divergence with the 2022 peak?
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Another one bites the dust. IXIC breaks down on daily chart.
vix is just the positions of the market maker conglomerate. freemasons agree to lose money together and behave based on symbols and numbers. vix is not a measure of risk OR volatility.
akikostas
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@Schmitty69, VVIX / VIX however may in fact be. The more manipulated VIX is, the lower the VVIX.
@Schmitty69, Would you rather explain better in DM? thank u
akikostas
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AMIT-RAJAN
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Nice sharing! thanks good to read description
JabezDolz
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Papa Elon is always right
Krsnake
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Nice analysis
louistran_016
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sorry i am confused, on the first chart is VVIX/VIX has to end at 8.46 or the level is more like for reference? and 2 questions from your post, why is this period full of massive traps? and how far needs SPX to grow for it to avoid a massive divergence with the 2022 peak?
akikostas
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@louistran_016, 8.46 just happened while drawing, it is not a target.
I am asking these questions myself. I don't have an answer. Do you have an answer?