Friday, June 14th. - Stock Trends, Charts, and Commentary
The current Volatility Index reading ...
The VIX (Volatility Index) is a favorite of many investors because it is a reflection of what the options market is saying for a period that is 30 days out.
Today, we posted a chart that show's the VIX versus the SPY's movement. SInce a rising VIX is a negative, the SPY's movement will be down when that occurs. A dropping VIX is a positive, so the SPY will move up when that occurs.
The market has been a bit shaky in the past few weeks, so take note of what the VIX has done since May 22nd.
It has been in an up trend (a negative condition) because its pattern of higher/highs and higher/lows has not been broken yet. Remember that a rising VIX relates to a down market, so the VIX has to shift back to a down trend for the market to have another rise.
There was an increase in Inflowing Liquidity levels yesterday, so the VIX could see a drop today. That would be nice, but it would take a close below 15.6 for the VIX to show real improvement.
Why 15.6? Because 15.6 would only close the gap created on June 10th., and it would take movement below that level to impress the market.
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