SPX:VIX Daily Chart Overbot Negative Divergence

The SPX:VIX ratio is one of Keystone's Turn Signal indicators but it focuses more on when the ratio drops and moves under the 68 level.  The ratio is now above 100! Keystone placed an extra hankerchief in his pocket since the ratio is now at nose-bleed levels, a multi-year high.  This level matches the July 2007 highs. The second black circle in October 2007 marked the exact multi-year market top for the broad indexes. The red lines show very attractive negative divergence across the board with overbot stochastics and near overbot RSI which says a spank down is on tap.  The ratio moving down corresponds to the SPX dropping and the VIX rising. The ratio at this level says that bringing on and increasing market short positions is prudent. 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.