SnP500 bearish divergence
By the solid blue line represented S&P500 shows lower low and lower high in April .
Relation of VXV (CBOE S&P500 3-M Volatlity) and VIX (CBOE Volatlity) - candle chart - gives us information about the VIX term structure (VXV/VIX>1 => contango, VXV/VIX<1 backwardation). The lower the number, the higher the possibility of correction within 3Mo (by exhausting) according to the option community. The blue and green lines are the MA(50) and MA(20) respectively.
S&P500 achieved new hihgs by the begin of April (see interrupted blue line on the top of S&P500) while both MA's ware falling.
The MACD, built on the VXV/VIX, shows bearish divergence also. This MACD is very far from the underlying market and wouldn't have any relevance alone. A reinforcing/confirming supplement to the other signs.
Relation of VXV (CBOE S&P500 3-M Volatlity) and VIX (CBOE Volatlity) - candle chart - gives us information about the VIX term structure (VXV/VIX>1 => contango, VXV/VIX<1 backwardation). The lower the number, the higher the possibility of correction within 3Mo (by exhausting) according to the option community. The blue and green lines are the MA(50) and MA(20) respectively.
S&P500 achieved new hihgs by the begin of April (see interrupted blue line on the top of S&P500) while both MA's ware falling.
The MACD, built on the VXV/VIX, shows bearish divergence also. This MACD is very far from the underlying market and wouldn't have any relevance alone. A reinforcing/confirming supplement to the other signs.
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.