• 302 days Will The ECB Continue To Hike Rates?
  • 302 days Forbes: Aramco Remains Largest Company In The Middle East
  • 304 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 704 days Could Crypto Overtake Traditional Investment?
  • 709 days Americans Still Quitting Jobs At Record Pace
  • 711 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 714 days Is The Dollar Too Strong?
  • 714 days Big Tech Disappoints Investors on Earnings Calls
  • 715 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 717 days China Is Quietly Trying To Distance Itself From Russia
  • 717 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 721 days Crypto Investors Won Big In 2021
  • 721 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 722 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 724 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 725 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 728 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 729 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 729 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 731 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Why the VIX is Important to Follow ...

The VIX is derived from the S&P 500 options for the next 30 days. So, it is a representation of the market expectations during the next 30 day period.

Note that it is derived from the S&P 500 options That is important because the S&P 500 is a favored index used by Institutional Investors. The reason for this is because the S&P 500 is the most representative index of the economy's health due to its wide sector representation.

So, the VIX is an important index to be watched which is why we are posting its chart today.

The first observation to make (on the chart) are the "fan lines" since the peak high made last August.

Correlating with that are the VIX peaks made since August. (Now is a good time to remember that the VIX moves in the opposite direction of the stock market.)

Yesterday, the VIX closed at 26.54. What was significant, was that it closed above its 2016 triangular formation seen on the chart.

Since the VIX has made a series of three higher peaks since last November, the risk now is that it makes another higher peak in the coming days. That would be a real negative for the market and therefore the risk levels are elevated.

VIX

 

Back to homepage

Leave a comment

Leave a comment