SPX:VIX Ratio Chart Divergences Megaphone Fight for 68

SPX:VIX ratio shows the megaphone pattern target completing with that lower touch at 42-ish. Price moved down in a two-leg bear flag off the top, from 85 to 58, then consolidation sideways, then second leg 70 to 43. The divergences forecast the moves, negative divergence in February and positive divergence a few days ago at the low print.

Thus, price popped and now sits on the magical 68 line. If the ratio stays under 68 the broad market selling should resume. If the ratio climbs back above the 68 level, then the market bulls will delay the inevitable selling until the ratio moves back below 68. Selling is coming and this ratio will tell us tomorrow if it begins right away or if it wants to let the bulls have some fun a day or few before the selling begins again. Simply watch which side of 68 the ratio prefers tomorrow. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.