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

Elliott Wave Analysis On VIX Index And The SP500

What is VIX Index? It's an important market that gives you an idea how much fear is involved during bear market period on stocks, which is in play for the last few weeks. Well, what is interesting to me is that this market is selling off ahead of important US elections, but events like this can be trend changers. In other words, they can cause some reversals. Simply put, investors will adjust their positions which may have an impact on price move. So if trend will change on stocks, then this will be from bearish to bullish side.

Those who follow me closely will know that I am tracking final stages of a corrective retracement on S&P500 from August highs. It's a three-wave decline at the moment, so technically I would be expecting a bounce towards the end of the year.

S&P500, Daily

S&P500 Daily Chart

And if I look at the VIX index, then we can also say that price is in final stages of a current corrective structure, thus it also suggests a turn down, ideally from around 22-25 area on a continuation contract. Pattern on VIX tells me that the next important leg will be lower which is obviously matching with our count on stocks. Also, lets also not forget to mention an important trendline resistance on VIX, connected from 2016 highs.

VIX, Daily

VIX Daily Chart

 


Interested in our services? We have a Special Offer: Get 14 Days Access For 1€!! Grab the opportunity now at www.ew-forecast.com You can even subscribe to our Twitter account -> @ewforecast

 

Back to homepage

Leave a comment

Leave a comment