Stock chart patterns and technical analysis (TA) explained simply. Disclaimer: This blog and all its contents are for educational and entertainment purposes only. Do not trade or invest based on any information seen on this blog. Please read Terms of Service. The K E Stone blog sites (Keybot the Quant) are blacklisted by Google, so enjoy the ad-free experience, and only use the Donate button when supporting the sites.
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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