Keystone's SPX:VIX Ratio Indicator Approaches 35

SPX:VIX ratio shows a sharp move lower towards 35, last print 37.48.  Keystone watches two levels; 68 when the markets are in rally mode and 35 when in bear mode.  Note the red circles that show the drops under the 68 level; each of these equate to triple digit down days on the Dow Industrials.  Now the tables are turned with the ratio only two points above the 35 level.

In an ideal set up, this ratio will print under 35. Then, when the ratio moves back above 35, that will correspond to a triple digit up day for the Dow Industrials and typically a rally move for several days.  Considering that the fall was so sharp and quick over the last week, a market bounce at any time would be expected regardless of the 35 level.  Should the ratio lose the 35 level, wait for it to move back above 35 to signal that a strong up day is in progress.  This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here or any links attached to this information.  Consult your financial advisor before making any financial decision.