The VIX getting uncorrelated again to SPX

    Posted by matt on 18th of Nov 2022 at 03:25 pm

    $VIX - Chart Link-

    Matt, I get confused on this

    Posted by chlo8888 on 30th of Nov 2022 at 10:58 am

    Matt,

    I get confused on this one. Does the VIX getting uncorrelated with the SPX portend a move down or up in this case (for the SPX)?


    Thanks.

    When the VIX gets uncorrelated

    Posted by matt on 30th of Nov 2022 at 11:44 am

    When the VIX gets uncorrelated to the SPX it means that a price reversal is coming within a day or so. that reversal in price might be as short as 1 day, for example price has been uptrending, and you get a good 1 day pullback only, or a 1 day bounce if price was down trending. It could be anywhere from a day to a several days, and once in a while they occur at major highs and lows. when you study the chart, it goes back and forth- generally the way I look at it: if price is uptrending and you get one of these, then expect at least a 1 day or several days pullback coming any time. If price is down trending and you get one of these, then expect a price bounce any day (again could last a day, several days, or larger inflection)

    Making it really tuff to

    Posted by fredsaid on 18th of Nov 2022 at 03:29 pm

    Making it really tuff to get long for a T-Day rally but we've seen the uncorrelation last a couple days sometimes.  That NYHL looks ominous too but again it could 'hang out' for 1-2 weeks before the real fun begins.   Guess I'll add a little to the short term longs and add a lot to the mid-term shorts.

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