• 3 days How To Invest In The Cybersecurity Boom
  • 5 days Investors Are Patient With Unprofitable Giants
  • 7 days Wells Fargo Back In The Scandal Spotlight Once Again
  • 9 days 5 Stocks To Keep A Close Eye On This Year
  • 10 days As Auto Giants Flail, Look To Chip Stocks For Gains
  • 11 days Central America Is Ready For The Bitcoin Hustle
  • 13 days China’s Video Game Restrictions Unlikely To Slow Down Booming Industry
  • 14 days Top Performing Stocks As Inflation Fears Grow
  • 15 days US Airline Stocks Take A Beating On New EU Restrictions
  • 16 days This IPO Could Open Sustainable Fashion Floodgates
  • 17 days Crypto Crime Nets Another $2B Fraudster
  • 19 days This Week’s Hottest Meme Stocks
  • 20 days Why World Markets Should Be Watching Germany Closely
  • 22 days Could ‘Cultured’ Meat Rival The Plant-Based Megatrend?
  • 25 days ‘Easy Money’: Crypto Is Still Attracting Newbie Investors
  • 26 days Foreign Syndicates May Have Stolen Up To $400B In COVID Benefits
  • 27 days Gold Jumps Above $1800 Ahead Of Jackson Hole Summit
  • 27 days International Banks Blacklist Afghanistan Following Taliban Takeover
  • 29 days China’s Tycoons Are Getting A Serious Reality Check
  • 30 days U.S. Cannabis Space Heats Up With Telling Tilray Acquisition
Marty Chenard

Marty Chenard

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he…

Contact Author

  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