Keystone's SPX:VIX Ratio Indicator Currently Bearish

The SPX:VIX ratio is an important turn signal tool for markets. Keystone uses the 68 level to separate bulls from bears. At mid-June, the bulls crossed above 68 so they led the market parade higher. In recent days, however, the bull-bear struggle is clearly evident with the ratio oscillating above and below 68. At 66.94, this is bear-friendly for markets. Note that the 50-day MA is 66.77 so price is also deciding on whether or not to lose this important support/resistance level.

If the ratio stays under 68, the markets will continue to sell off. If the ratio pops above 68, a large up day will occur for the markets and the broad indexes will continue higher. Watch it in real-time after the opening bell. 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.