SPX:VIX Megaphone Negative Divergence

SPX:VIX ratio chart shows the megaphone pattern evolving for last five months, look how the price hugs the top of the megaphone for the last two months trying to stay above the moving averages. Negative divergence is in place, it will be a long way down. Watch the 68 level, that is the key, when this ratio falls below 68 which can very well happen this week, 2/14/11 and on, any day in fact, the Dow Industrials will probably drop 200 or 300 points. Thus, it serves as a broad market directional signal. Do not let the elevated 85 price fool you, this ratio can swing wildly and easily be at the 68 level in only a day or two. 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.