S&P 500 likely to correct pre and post 2020 US elections
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What we have on the 3D chart with the SPX is a moving average sell signal in the making, one with a good probability of playing out. However, this is not the main reason for why I am bearish on the stock market in general.
Posted in the comment section below is a chart of VIX, SPX´s volatility index. VIX´s volatility has been contracting for the last few weeks and it is once again at a very low volatility level. If volatility can not contract any longer it can only expand right?
In this case expanding volatility on the VIX means the index will likely surge to the upside (3D HMA buy signal) and if, key point, VIX is going to increase then that means volatility of the SPX is going to increase as well.
Historically, volatility expansions on the S&P 500 have more often than not come to the downside hence the bearish bias.
Once again please visit the comment section where you will find pictures that supplement this analysis.
Thank you.
What we have on the 3D chart with the SPX is a moving average sell signal in the making, one with a good probability of playing out. However, this is not the main reason for why I am bearish on the stock market in general.
Posted in the comment section below is a chart of VIX, SPX´s volatility index. VIX´s volatility has been contracting for the last few weeks and it is once again at a very low volatility level. If volatility can not contract any longer it can only expand right?
In this case expanding volatility on the VIX means the index will likely surge to the upside (3D HMA buy signal) and if, key point, VIX is going to increase then that means volatility of the SPX is going to increase as well.
Historically, volatility expansions on the S&P 500 have more often than not come to the downside hence the bearish bias.
Once again please visit the comment section where you will find pictures that supplement this analysis.
Thank you.
Comment:
VIX´s volatility
Comment:
3D HMAs on VIX