SKEW CBOE Skew Index Daily Chart

The SKEW shows the stock market tops occurring above 140 and bottoms occurring at 120 and lower. The stock market is moving choppy sideways this year chewing up bulls and bears with drastic up and down spikes forcing traders to zig when they should have zagged. The bottom in stocks a few days ago comes with SKEW at 124-ish on the right side of the chart. That is a cheesy level to start a rally. Note that all prior stock market bottoms occurred below this level. In addition, if you look at a longer term SKEW chart, you will see how the chart is already elevated over the last year. SKEW should be moving through the much lower 100-130 range instead of the lofty 120-145 range. The global central bankers have distorted markets everywhere you look.

The SKEW will either move higher to 135+ again, which will be a great time to short the market, or, the downside is not done yet since 124 is a cheesy bottom, and the SKEW will continue lower through 120 before placing a better bottom for stocks. The latter case obviously means that the stock market will sell off. The SKEW is not too helpful unless it is at 135+ as Keystone has posted the chart at those times announcing the market tops. Right now SKEW is staggering sideways unsure as to what it wants to do. If it drops stocks are in trouble. If the stock market rally continues higher, a market top will occur again at 135+. 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.