• 275 days Could Crypto Overtake Traditional Investment?
  • 280 days Americans Still Quitting Jobs At Record Pace
  • 282 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 285 days Is The Dollar Too Strong?
  • 285 days Big Tech Disappoints Investors on Earnings Calls
  • 286 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 288 days China Is Quietly Trying To Distance Itself From Russia
  • 288 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 292 days Crypto Investors Won Big In 2021
  • 292 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 293 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 295 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 296 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 299 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 300 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 300 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 302 days Are NFTs About To Take Over Gaming?
  • 303 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 306 days What’s Causing Inflation In The United States?
  • 307 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Rally IS Over

VIX verse OEX

Many fund managers and analysts are calling for much higher prices in the market near term, medium term, and long term, extremely bullish sentiment. These are the ingredients for making a top in the market. We have very high sentiment, overbought oscillator, and some other technical clues illustrated below.

The VIX is the ticker symbol for the CBOE volatility index, basically the fear gauge and right now it is indicating very little fear.

The chart below is a comparison of the VIX and OEX. OEX is the S&P 100 index. The candlesticks represents the VIX and is currently sitting on long term support. The purple line represents the OEX or S&P 100 index.

Notice the lows in the VIX and the market highs within the translucent ovals noted on the chart.

Currently the VIX is breaking above down-sloping trendlines suggesting strength. On the bottom of the chart is a momentum oscillator and is showing momentum is waning, suggesting a reversal in the VIX. I have also drawn a line as support for the oscillator showing a bullish divergence.

OEX and VIX
Larger Image

Bullish on the market? Tighten your stops up. If you are shorting the market, be mindful of the changes in trend dates. All sent out to my subscribers with upside and downside targets.

Above all, protect your capital and manage your trades.

 

Back to homepage

Leave a comment

Leave a comment