SKEW Index Daily Chart; SKEW at Same Levels as Before the Q4 2018 Stock Market Crash

The SKEW Index has skewed higher to levels not seen since the stock market top ahead of the Q4 2018 waterfall crash. Inside the purple bubble on the left, the first two stock market peaks stuttered 50 to 60 points lower each time, and then the end occurred after the September 2018 high. The S&P 500 collapsed about 600 points in Q4 2018.

At the mid-September 2018 peak, the SKEW tops out with the SPX. The SPX, however, only pulls back about 40 points, then rallies for a few more days, then the big crash begins. The SKEW peaked and then about 2 weeks later the stock market peaked and collapsed. If the current price action in SKEW holds, and a peak is at hand, the same fractal behavior may play out (a short initial pull back for a few days, then a rally back to the highs for a few days, then a collapse).

Note that in these examples the SPX pulls back from 40 to 60 points off the top for a few days, then rallies back to matching highs or higher for a few days, then rolls over and dies. Thus, when stocks begin selling off, the dip-buyers may be super anxious to jump back in say after the S&P 500 falls only about 50 points. However, once price recovers higher again, watch that peak since that may be the actual swan dive lower. 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.