The VIX is one of the simpler inverse leading indicators for the SP500, that’s why we painted the line in the attached chart green. This is the green light for getting long US equities. This is one of the multiple factors that had me cover my SPY position and buy it long today.
As you can see the VIX and both the Jan & Feb futures are trading below the 50 DMA and well below realized 30 day vol. While I do not use 50 day moving averages for anything other than painting a behavioral picture of how the masses could react, these lines have relevance on days like today.
The VIX is currently down -3% at 58.23. It could go a lot lower and, as a result, US equities higher. I have an immediate term “Trade” target for the VIX of 52.79 – that’s another -9% from here. There’s huge support for the positive intermediate “Trend” in volatility down at 47.52.
KM
As you can see the VIX and both the Jan & Feb futures are trading below the 50 DMA and well below realized 30 day vol. While I do not use 50 day moving averages for anything other than painting a behavioral picture of how the masses could react, these lines have relevance on days like today.
The VIX is currently down -3% at 58.23. It could go a lot lower and, as a result, US equities higher. I have an immediate term “Trade” target for the VIX of 52.79 – that’s another -9% from here. There’s huge support for the positive intermediate “Trend” in volatility down at 47.52.
KM
