How to read the Chart? SPX in main picture an below - with own scales- you find the Put/Call Ratio and and bottom the VIX.
Put/call Ratio tells us, how much euphoric is in the market. Values below 0.65 , market is bullish.
VIX tells us, how much volatilty is in the market. Values below 13 tells us normally, that market is prepared for larger or bigger movements. Values also important, for calculate price of warrants etc. Low VIX cheaper prices for warrants.
So: in the chart now you can see several time stamps with green marks on price SPX, VIX and P/C Ratio. The meaning of this all: high coincidence with low values in VIX and P/C Ratio will high indicator for downward moves. The deeper values on VIX and P/C Ratio, the stronger the downward move.
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