Market Crash Only Days Away If VIX Repeats Consistent History
The S&P500 Volatility Index is currently breaking out into levels that historically has been catastrophic for the overall market.
On the monthly chart, we can see that whenever the VIX breaks out and confirms above the light orange trendline plotted on the chart, double digit drops in valuations happen for the S&P500 usually within mere weeks.
Which means any day or moment now we can see a major crash for the broader market.. much greater even than what we have seen so far as the VIX appears to have much bullish momentum by painting 3 consecutive higher lows and multiple higher highs on significant time scales.
This will definitely now be one to watch as this would negate our former long idea on SPY due to the sudden turn of events on the S&P500's volatility.
If the VIX can have its price driven back below the orange line and CLOSE this monthly below it, that would give market bulls hope. Similarly, many assets are at major fork in the roads on their charts right now, and the VIX as we can see is no exception.
On the monthly chart, we can see that whenever the VIX breaks out and confirms above the light orange trendline plotted on the chart, double digit drops in valuations happen for the S&P500 usually within mere weeks.
Which means any day or moment now we can see a major crash for the broader market.. much greater even than what we have seen so far as the VIX appears to have much bullish momentum by painting 3 consecutive higher lows and multiple higher highs on significant time scales.
This will definitely now be one to watch as this would negate our former long idea on SPY due to the sudden turn of events on the S&P500's volatility.
If the VIX can have its price driven back below the orange line and CLOSE this monthly below it, that would give market bulls hope. Similarly, many assets are at major fork in the roads on their charts right now, and the VIX as we can see is no exception.
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