Saturday, November 7, 2015

VIX Volatility and SPX S&P 500 1-Minute Charts Illustrates Inverse Correlation


Volatility and the stock market move inversely to each other as Keystone often points out. The charts clearly illustrate this with the VIX at a top at 2:42 PM EST on Friday then trending lower into the closing bell. Conversely, the SPX bottoms at 2:42 PM and rises into the closing bell. Central bankers keep their foot on the neck of volatility to maintain elevated stock markets. Market bears need the VIX above the 200-day MA at 16.33 to create strong selling pressure. Under the 200-day MA the market bulls are not concerned about any short term market pull back since stocks will recover and rally. 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.

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