Keystone's SPX:VIX Indicator Remains Under 35

Once the broad markets sell off and the SPX:VIX ratio moves down and falls under 35 the market bears are in control.  When the ratio then moves above 35, that signals a large up day for the markets and as long as the ratio stays above 35 the market bulls will be favored. The move above 35 from 15Sep to 19Sep corresponds to the broad markets moving to the upside. Then a stutter step 19Sep brought on shaky markets but once the ratio confirmed that it wanted to stay above 35, the market bulls were in control into 21Sep.

Note the failure of 35 on 21Sep, last Wednesday, and this occurred ahead of Chairman Bernanke's afternoon annoucement that tanked the markets Wednesday afternoon, Thursday, into Friday. The ratio losing 35 was the tell of trouble coming and Keystone highlighted this that day. Since then the ratio remains under 35, and despite this two-day bull run, the ratio is not yet above 35 to signal a huge market up day on tap as well as confirming that this bull recovery rally is the real deal. Last print at noon today, 9/27/11, at this writing, is 33.39.

The market bulls cannot count their chickens until they move above the 35 level. Since the ratio is not yet there, stay on guard if bullish since the bull rally is not yet confirmed. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or on any link associated with this site. Consult your finanical advisor before making any investment decision.