Tuesday, May 8, 2012

Keystone's SPX:VIX Ratio Indicator Loses the 68 Level Signaling Bearish Markets Ahead

Keystone's SPX:VIX ratio indicator (reference the Turn Signal page), lost the 68 level this morning signaling a large down day on tap today, the Dow Industrials should easily lose triple digits--as long as the ratio stays below 68. The ratio just performed a successful back kiss, for bears, remaining under 68, now printing 67.85. As long as the ratio is under 68, the broad indexes are in big trouble and will continue selling off in the days, perhaps weeks ahead. The bulls must raise the ratio back above 68 to save the day.  Watch the ratio closely today.

Note Added 5/8/12 at 3:22 PM:  At 2:30 PM EST, the SPX:VIX ratio popped back above 68 which now favors bulls again and deflates the bear's hopes for continued market downside. Keep watching, however, since the ratio may tumble under 68 again before the close or in tomorrow's trading. This battle continues until the ratio clearly moves above 68 and back up over 70 and higher signaling market rally time, or, back below 68 which will correspond to a large down day and further market downside moving forward.
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7 comments:

  1. AnonymousMay 8, 2012 at 10:56 AM

    I really love this site. your commentary is honest and helpful unlike all the other places I have been on in years. Heck since I have found KS two months ago I don't even watch CNBC anymore.What a great feeling to know someone really does care about helping others. Thanks KS,...dale

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    1. Keystone SpeculatorMay 8, 2012 at 11:37 AM

      Hello Anon, Keystone says Bitteschon (your welcome).

      Delete
  2. WeaverMay 8, 2012 at 11:06 AM

    $TRIN over 3. When's the turn, KS? At the 100-day?

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    1. Keystone SpeculatorMay 8, 2012 at 11:41 AM

      Hello Weaver, market are in serious trouble now that the retail sector failed and the SPX:VIX ratio lost 68. This points towards extended downside ahead. The TRIN at 3 does indicate a recovery move will be needed either this afternoon or tomorrow but there is serious technical damage that has occurred now. Unless things change, markets are in a short the rally mode. Markets will simply remain in continual sell mode if the SPX:VIX stays under 68.

      Delete
  3. Charles Hugh SmithMay 8, 2012 at 2:34 PM

    Hi KS, I'd like to add my thanks to you for posting such incredible TA. I see the SPX:VIX is at 68.15, wow, you know how to call it-- the SPX is on the move higher. FWIW I posted a link to your excellent site on my own blog in the hopes it helps generate more traffic for your work. You are my first read of the day--CHS

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    1. Keystone SpeculatorMay 8, 2012 at 3:20 PM

      Your welcome Charlie and danke for the link. There is still about 50 minutes of trading remaining so the items most important are SPX:VIX 68, RTH 41.35 and XLF 15.18.

      Delete
  4. MCAPMay 8, 2012 at 6:16 PM

    Nice to see some compliments on KS handy work I wish I referenced what is ordinarly my morning routine before I began scalping ES not being informed had me quickly long 8 ES and it was a long round trip today. There is no way we dont take out the LOD of the last two days perhaps tonight we'll tank in globex I'll be on the ready... Tough trading silver dead cat bounces today the cat had to slammed three times before it bounced...

    ReplyDelete

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