Keystone's SPX:VIX Ratio Indicator Wrestles with 35

This is Keystone's SPX:VIX Ratio Indicator where 68 is an important level concerning a bullish rally with potential for reversing, and now the 35 level, where the markets are determining if a long term rally will begin. Each fall below the 35 level, shown by the red circles, corresponds to the equities markets tumbling lower, each move above 35, the green circles, show where the markets started rally mode. For the days that the crosses occur, expect triple digit Dow Industrial moves that day respective of the direction the cross occurs.

Note that last Thursday, 10/20/11, the ratio started to break under 35, but the markets were saved when the Fed leaked information that they are open to future quantitative easing, thus, the bounce occurred off the 35 level. For today, the market bulls are favored as long as the ratio stays above 35. If the ratio drops under 35, the market bears are seizing back control and markets will fall large if/when that occurs.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 financial advisor before making any investment decision.