VIX and S&P

By | June 16, 2009 4:26 pm

Many technical analysts were alarmed yesterday because the VIX closed at 30.81.

Why the concern?

Because over 30 is currently considered a reading that has been associated with past stock market drops.

One day does not make a trend, so more than one day would be required to confirm a trend change.

At the same time, the S&P 500 dropped yesterday, but it still held its trend line. So while risk levels increased yesterday, a correction will need more market data for any kind of confirmation.

Sometimes, there is anecdotal

Yesterday’s VIX chart is above

Category: Daily

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

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