Strange Things are Afoot at the Circle-K
The VIX (fear gauge) and SPX (S&P 500) correlation is a simple one. If the market is down and the VIX is also down this is a good bullish sign. If the market is up and the VIX is up, like we saw yesterday, this is a good bearish sign.
The VIX should be watched by all traders. You do not have to watch it during the day but at least take a glance of it at night when you are doing your charting. If you would have done that over the last couple of days you would have known we are bearish in this market.
Let’s take a look at the charts.
S&P 500 & VIX Analysis