VIX Pullbacks
Posted By Barry Ritholtz On August 16, 2012 @ 5:24 am In Technical Analysis | Comments Disabled
On Monday, we showed Dick Arms’ chart correlating this level of VIX with subsequent market tops (The Disappearing Market [1]).
Since then, Market Tech Reports [2] noted the percentage drops associated with the VIX at this level — from 6-19%. Its noteworthy that each of these falls have been arrested and reversed by Fed actions involving QE or Operation Twist.
click for larger chart
[3]
Source: Market Tech Reports [2]
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2012/08/vix-pullbacks/
URLs in this post:
[1] The Disappearing Market: http://www.ritholtz.com/blog/2012/08/the-disappearing-market/
[2] Market Tech Reports: http://markettechreports.blogspot.com/2012/08/market-top-indicators-vix.html
[3] Image: http://www.ritholtz.com/blog/wp-content/uploads/2012/08/spx-vs-vix-tops.png
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