SPY & VIX - USING 75% VIX RETRACEMENT LEVELS FOR SUPPORT
Updated
Follow up from my last publication on this phenomenon from 8 months ago.
When VIX falls 75% after a spike-run up of at least 5 points, it sets a foundation of buying support that often holds when revisited or retested.
This is a unique and powerful observation.
The last foundation level of support in the SPY is 209-204-199. That covers a wide range, but it is just under the current level of 213.28.
Search for the other charts I have posted here on this phenomenon and keep it in mind.
Tim
When VIX falls 75% after a spike-run up of at least 5 points, it sets a foundation of buying support that often holds when revisited or retested.
This is a unique and powerful observation.
The last foundation level of support in the SPY is 209-204-199. That covers a wide range, but it is just under the current level of 213.28.
Search for the other charts I have posted here on this phenomenon and keep it in mind.
Tim
Note
The S&P didn't drop down to the ideal support level, which can mean two things: 1. That the market has far MORE buying power than normal.
2. The market will drop faster and further once the current buying wave is complete. In past instances when we don't see a re-test of support, that it means the market is in a weaker condition where weaker-handed investors are holding stocks and end up selling them in severe price weakness back to the strong hands.
Keep posted and ask questions to see what the current market is telling us. Join us in the Key Hidden Levels chat room each day.
Note
It's been over a year since I last updated this chart, but I hope you have been watching for more signals in this reliable indicator: The last two dates for support at the 75% VIX Spike Retracements are August 30th and November 21st. Plot the range of that day as important support and include a box of support from the lowest low prior to this date listed and the high of the date also.
Join Me in the Key Hidden Levels Chat Room to discuss further.
Cheers.
Tim 12/3/2017 9:01PM EST
Note
3 VIX spikes have occured so far this year, creating new support levels for the market to cushion future corrections to current prices.The old saying:
When
VIX is HIGH, it is USUALLY TIME TO "BUY".When
VIX is LOW, is is usually time to "go". ("go" is "to get out") Here's the latest chart for you.
Tim 4/17/2018 9:00AM EST
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.