Tuesday, 24 April 2012

SPY/VIX ratio - a bearish clue?

A quick update on the quirky SPY/VIX ratio charts. With today's rise in the VIX, and a moderate fall in the Sp'500, we are seeing some supporting evidence of the near term bearish outlook. There is also a hint.- see chart'3, that the giant H/S formation theory might be correct. If that is the case, the market has a long way yet to decline across the next few months.

SPY/VIX, near term, weekly. 1yr

SPY/VIX, 10yr historic

SPY/VIX, 3yr, near term, bearish H/S scenario/theory

Goodnight...from London city.