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2014: Year Of Indecision And Volatility For S&P 500

Published 08/11/2014, 02:13 AM
Updated 07/09/2023, 06:31 AM

Each candle on the SPX:VIX ratio chart below represents one year. I last wrote about this ratio pair on July 31st.

 
You can see at a glance that price action has been extremely volatile, so far, this year and has nearly re-tested the lows of last year's candle. The Momentum indicator remains elevated at an all-time extreme on this timeframe.
 
At the very least, bulls will have to push the price above the 150.00 level and hold it there to coax investors into putting their money in equities in the near-term...otherwise, we'll continue to see volatile intraday swings, or even a much bigger correction in equities if price falls and holds below the 110.00 level.

SPX/VIX

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