Wednesday, May 9, 2012

Keystone's SPX:VIX Ratio Indicator Showing the Fight for 68

The bulls and bears fight it out for the coveted 68 level.  The fun started yesterday with the bears taking control of the markets but then the bulls took it back by the close.  At the open today the bears run with the ball again, but fumble, the bulls run, but fumble, the bears run again, but fumble, the bulls are now running. Flip a coin. Whichever way this breaks from 68 dictates the broad market direction.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 5/9/12 at 3:33 PM:  At 2:54 PM, the ratio drops back below 68 (as the original chart and message was posted) and the markets weaken accordingly. The bears are running with the ball again.  The saga continues.

Note Added 5/9/12 at 3:51 PM:  At 3:42 PM, the ratio pops back above 68 and the markets strengthen slightly. The bears fumbled so now the bulls are running with the ball again. Neither side seems to want the ball.

Note Added 5/9/12 at 4:02 PM:  At 3:53 PM, the ratio drops back below 68 and the markets weaken again. The bears are in charge with the ratio under 68.
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2 comments:

  1. MCAPMay 9, 2012 at 7:01 PM

    http://scharts.co/Kns4FB
    Looking at the TA has me inclined to believe we are near a point where a break out of the downward trend line could send us smooth sailing into the 70's

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    Replies
    1. Keystone SpeculatorMay 10, 2012 at 6:13 AM

      Hello MCAP, over the last month the daily chart does hint at positive divergence which would be agreeable to the ratio moving back above 68 and higher. Thursday's action is critical.

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