Volatility Index - Time to Purchase?
Updated
I had drawn out the previous three times when VIX reached the support line. Every time we saw a powerful rebound of at least 35%. Because of this assumption, I didn't realize there was already a 34% climb, thus missing the opportunity to sell high.
However, we still see usually after the 35% climb, there is a decline back to the .618 Fib level, which was labeled in the graph. If you roll to the current time period, we notice the .618 level was just touched, thus confirming a reversal like previous times.
One other thing I noticed was the change in SPX/change in VIX. I researched from Q4 2021 to current time period, and when the that ratio is greater than -30, there is usually some sign of a reversal for VIX. Right now it's following that rule and I am very excited to see a possible jump on Monday's session.
However, we still see usually after the 35% climb, there is a decline back to the .618 Fib level, which was labeled in the graph. If you roll to the current time period, we notice the .618 level was just touched, thus confirming a reversal like previous times.
One other thing I noticed was the change in SPX/change in VIX. I researched from Q4 2021 to current time period, and when the that ratio is greater than -30, there is usually some sign of a reversal for VIX. Right now it's following that rule and I am very excited to see a possible jump on Monday's session.
Note
The best scenario would probably be SPX going up 0 - 0.05%, with VIX down from 2 - 4%. If that happens it would be extremely bullish for SPX.
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