![]() ![]() You can see that the 200-day MA is just below 25 and dropping. The trend of VIX remains bullish for stocks as long as both VIX and its 20-day moving average are below the 200-day MA. Regardless, we will act on the new buy signal when it appears. A blue “B” on the chart is a losing system trade, while a red “B” is a winning one. As one can see from the accompanying VIX chart, recent “spike peak” buy signals have not worked out all that well – save for the strong buy signal near the October lows. That is an oversold condition, and SPX can drop sharply while VIX is in “spiking” mode.Įventually, though, a VIX “spike peak” buy signal will be generated. Has returned to “spiking” mode - meaning that it has risen more than 3.0 points over a three-day (or shorter) time frame. The volatility complex indicators are weakening but have not turned bearish yet. ![]() ![]() A sell signal requires that New Lows outnumber New Highs for two consecutive days, and that the number of New Lows is greater than 100 on each of those two days. If that happens again, this indicator’s buy signal would be stopped out, and the indicator would return to neutral status. 22, for the first time this year, New Lows outnumbered New Highs on the NYSE. New 52-week Lows.” This buy signal is in jeopardy of being stopped out, although even if that happens, a new sell signal is not necessarily in place. Still, the market can decline while these oscillators are oversold, so “oversold does not mean buy.” We need to wait for a confirmed buy signal here before acting.Īnother indicator that has been bullish for quite some time is “New 52-week Highs vs. That means that the breadth oscillators have already reached oversold status. The decline since then has been swift, and breadth has been very negative, including one 90% down day. Both breadth oscillators generated confirmed sell signals as of February 17 th. Market breadth, which had been a stalwart of the bullish indicator on the way up in December and January, has weakened considerably. ![]()
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