InvestorsHub Logo
Followers 679
Posts 140848
Boards Moderated 36
Alias Born 03/10/2004

Re: DiscoverGold post# 20337

Sunday, 02/19/2017 9:17:05 AM

Sunday, February 19, 2017 9:17:05 AM

Post# of 54865
Amateur Investors: Weekend Analysis

* February 18, 2017

Typically there has been a strong correlation between the VIX and the S&P 500. Going back to the 1ate 1990's when the VIX has risen 5% or more the S&P 500 has been down 94% of the time with an average loss of 18 points.



Meanwhile if we look at those days when the VIX is up 10% or more the S&P 500 is down 99.4% of the time with an average loss of 27 points. This past Wednesday the VIX rose 12% however the S&P 500 was up nearly 12 points. As you can see below there has only been two other occurrences since 1998 where the VIX has risen 10% or more and the S&P 500 finished positive. Both of these prior events were in June of 2015. Thus we have now seen three of these occurrences in the past 20 months.



As mentioned above the last time the VIX was up 10% and the S&P 500 closed higher was in mid June of 2015 (point A). This signaled a topping process and an eventual 13% correction in the S&P 500. Thus we shall see how things play out this time around.



http://www.amateur-investors.com/AII_Weekend_AnalysisFeb_18_17.htm

DiscoverGold

Click on "In reply to", for Authors past commentaries

Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.