🟩 VIX stays low and SP500 tightens

30 maj 2023

We've been closely observing the SPX and VIX charts in recent weeks, and we're seeing some compelling signals that indicate a possible bullish market ahead.

🔍SPX: Identifying the Firm Bottom and Key Resistance Levels
Over the last eight months, the SPX has exhibited a tightening pattern, suggesting the establishment of a firm bottom. This has been particularly evident since October, with the index stabilizing and showing less volatility. Now, what we're looking for is the SPX to clear two key resistance levels at 4200 and 4248. If we see a clearance of these levels, it would be a significant step in the right direction and a strong indication of a potential uptrend.

🌡️VIX: Low Volatility as a Bullish Sign
Complementing this analysis, we've been keeping a close eye on the VIX, which is often referred to as the "fear index". In the past 18 months, the VIX made a low point and, importantly, it has remained low around the 18 level. This sustained low level of volatility is a positive sign for the bulls. High levels of the VIX typically indicate investor fear and market uncertainty, whereas low levels suggest investor confidence and a potentially bullish market.

📝Conclusion: Confluence of Promising Signs
In summary, we're seeing a confluence of promising signs from the SPX and the VIX. The SPX is showing a firm bottom and is approaching key resistance levels, while the VIX is maintaining a low level, indicating reduced market fear. Together, these indicators could be pointing to a bullish market ahead.