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VIX and the Market


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#1 redfoliage2

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Posted 12 March 2018 - 09:13 AM

VIX is on ST down trend but still way above 200 dma.  As long as VIX remains above the 200 dma the market will go up, believe or not.  But I see VIX will drop to or below the 200 dma by the end of the week.


Edited by redfoliage2, 12 March 2018 - 09:14 AM.


#2 Rogerdodger

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Posted 12 March 2018 - 09:20 AM

There seems to be a price lag lag of about one week in Tom's VIX/SPX Correlation chart below, but currently it looks sanguine.  


Edited by Rogerdodger, 12 March 2018 - 09:25 AM.


#3 dTraderB

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Posted 12 March 2018 - 09:29 AM

Note VIX is up by 6%    10:25 EST



#4 redfoliage2

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Posted 12 March 2018 - 09:37 AM

This observation is not accurate as when the correlation approaching zero line in Oct, and late November 2017, and in Jan. 2018 SPX kept making new highs until the correlation had turned back down below zero several weeks later.  Right now the correlation is far away from zero at historical norm.