Keystone's SPX:VIX Ratio Indicator

Time to begin watching the SPX:VIX ratio again.  The ratio moved above 68 to verify the market rally starting in June.  There was a little tease at 68 in late July but the bulls pulled the ratio higher to continue the summer rally. As long as the ratio is above 68, the bulls rule. The thin red lines show the negative divergence spank down starting in September.  Now it is time to watch and see if and when the SPX:VIX falls back down thru the 68 level.  On that day, the broad indexes will typically drop strongly, the Dow would be off triple digits.  The indicators are all weak and bleak so even after a bounce would occur, should it occur, lower prices are on the way. Start watching this each day to see when the 68 trigger hits. This indicator is continuously updated on the Turn Signal page.