Monday, 21 May 2012

SPY/VIX - approaching first main target

The SPY/VIX ratio is approaching the first main target level.


SPY/VIX, 10yr

SPY/VIX, 3yr


The H/S formation - as seen best on the 10yr chart, remains an interesting chart. It would of course match up - and support the 'giant H/S formation' as I've suggested via the various monthly cycle index charts.

The SPY/VIX 3 year chart is approaching the 5.0 level. I realise the implications of such ratio levels, however, the 5.0 level has been a key level in the past few years. Will we get a significant bounce here, and put in a lower high in late May/early June?

The 1 year chart shows a clear rollover. Is this wave down a wave'4 ?  - see the recent posting for the Sp'500 weekly count theory.

*Futures are broadly flat right now, although we've seen some regular overnight 1% swings by the open.

We have another week of market nonsense ahead, it will be particularly interesting to see if the Facebook PPT can keep the stock above $38 this Monday - or even the whole week?

Goodnight...and good wishes for the week ahead.