VIX, DOW and Market Movement - Hei, Welcome To Xivan Post Blog, In this page, I Will inform you about VIX, DOW and Market Movement, I hope you can enjoy reading this
Article stock, it's the result of automatic content collection, To remind these info on the post review VIX, DOW and Market Movement it's advisable to be distributed to social media, I hope Helpful, view more clearly direct the info below.
18 December 2008
IntroductionThe Volatility Index, commonly known as VIX, is a Futures stock index traded in the Chicago Stock Exchange. It is often referred to as the barometer of investors’ confidence in equity market. It indicates the investor sentiment and market volatility. A higher VIX will indicate a lower DOW and vice versa.
What happened to VIX lately?
The attached chart shows that VIX was having very volatile trades lately; it climbed from $20 on 1 Sept 2008 to $80 on 27 October 2008, a hefty $ 60/= or 300% jump, which had never been seen before since 1993 when VIX was first introduced. Then it made a double top formation and plunged 40% to the present level of about $50 through volatile trades.
(Doubleclick for larger view)
What's the use of VIX?
VIX has volatile trades; hence, it is good gauge to judge the movement of the equity markets, which usually have less volatile trades that make future prediction difficult.
Where Can I Get Free Quotes?One can get free quote of VIX from here and DOW from here.
Where is VIX Heading?
The attached chart shows many weaknesses of VIX; for example:
a) It has just formed a double top formation and is presently declining from its second peak;
b) It's 20 MA (green) is about to cross under the 50 MA(blue), meaning VIX is about to start its decline;
c) The top and bottom Bollinger bands are falling together with falling 20 MA and flattening 50 MA;
d) The stochastic is showing a “falling peak” with VIX dropping steadily into the oversold region. There are still rooms for further declines.
The above weaknesses will show that VIX is presently under heavy selling pressure. One should soon see VIX started to yield once it crosses below the double top support (red) at around $48.
According to rule of thumb, once VIX crosses under the double top support, it will target for $15, which a projection from the base double top support, using equal length measured from the tip of the double top to the base support.
Where would DOW be then?
There is no direct co-relationship between DOW's and VIX’s movement. But if there is any indication at all, DOW will move up when VIX is moving down. However, if the projection of VIX is correct with a target of $15, DOW may be targeting around or max out at 13,000. But to reach that level, DOW would have to break several resistances including the one at 200 MA, which could be a "tough nut to crack" unless DOW is supported by very good news and economy figures.
Disclaimer:
Information here is for sharing and learning. It is not intended to give any advice on any stock or movement or trend of any index. If a price or movment of a stock/index is given, it is only intended for illustration. The reader shall verify the information given here before using them.
Similarly, the discussion about the article VIX, DOW and Market Movement, Hopefully with such a short review on the post VIX, DOW and Market Movement this, You've really find information about what is needed now. If you feel bermanfaatt with their reviews here, do not forget to distribute to the people closest to you, the info service facility Share Share Facebook and Twitter are available on this site.
This time you're reading an article with the title VIX, DOW and Market Movement with a url link address https://xivanpost.blogspot.com/2008/12/vix-dow-and-market-movement.html thanks for reading and do not forget to read the other reviews as well.
