Market Update 11/24/22: VIX FocusedPretty much were back to the big averages that we were around during the august 16th and 17th drop.
I try to keep it brief in this video.
If I HAD to guess, I would say the market will move back down soon based on the VIX. A big break in a 5 year trend would be for the VIX to drop under 17.50 and start a new week or month candle under that level.
Take care.
VIX.F trade ideas
Lower and LowerGenerally, the VIX Index tends to have an inverse relationship with the S&P 500 Index. This negative correlation has earned the VIX Index the title "fear gauge" because VIX Index has a tendency to move up quickly when the broad market declines with velocity.
Right now the VIX is getting lower and the market is moving up.
The comparison between the VIX Index and movement in the S&P 500 Index is close, about an 80% correlation, which confirms the reality of the two generally tending to move in opposite directions most of the time. In addition, the correlation generally tends to remain relatively stable throughout different market conditions.
No recommendation
🔥 The VIX Daily RSI Hit Oversold For The First Time Since 2004As the title suggests, the VIX (the volatility index on the SP500) has hit oversold (<30) on the daily RSI for the first time since December 2004. Scroll back and see for yourself.
A falling VIX is generally accompanied by bullish markets, while a rising VIX is often accompanied by bearish markets. If you wish to know more about the VIX, Investopedia has a great article on it.
In my view, it's highly likely that the VIX will be reversing very soon, which will most likely lead to a bearish reaction of the stock markets and therefore crypto. If you're planning to take risky long bets, consider postponing this. An oversold VIX only adds more risk to the trade.
$VIX filled gap, NOW WHAT?!Buy on rumor
Sell on news
REMEMBER THAT!
Feds gave lil gift - No one wants to rattle this time of year
OK, $VIX did what we expected
GAP FILLED
Now WHAT?
We wait to be sure that "top" is in, again
BUT until we get DIRECTION, can nibble here & there
@ Symmetrical Triangle support
🚨 We break Long Term = NEW BULL
#VIX $SPX $SPY #stocks
(GBPUSD) Wed, 23 November 2022 SetupOANDA:GBPUSD
GBPUSD Neutral bias
Status: Open short position and waiting for breakeven confirmation
What do I see?
- VIX could go bullish as it's on its major Daily low, resulting in USDCHF going bullish.
- Low volatility as the market waits for Durable Goods Orders MoM, New Home Sales, and FOMC Minutes report.
- Could result in a sideways market in the long run, as people couldn't conclude the direction of the market. Technically speaking both the bulls and the bears are equally strong right now, so let's see how the reports would go.
What I would do?
- If the reports got a bullish response, I'll go for breakeven and reconsider going bullish. vice versa.
Happy Trading! Good luck!
VIX overextending the trendSPX has been destabilizing both VIX and DXY - both of them fell out of their trajectories because of the euphoric and arogant push of the market - I don't expect the blow-off top to happen - unless SPX breaks ~4015 area - until then I remain bearish.
Expecting all markets to retrace today.