Wednesday, October 28, 2009

VIX Currently 20% Over 10 Day Moving Average

At 27.22, the CBOE Volatility Index (VIX) is currently at its highest level since the beginning of the month. Perhaps more importantly, the VIX is at its second highest level relative to its 10 day simple moving average (+20.0%) since the November 20, 2008 all-time high close of 80.86.

Short-term, this is a bullish oversold signal for stocks, but now investors have to be wary that the SPX has also broken its 50 day moving average level of 1050.

Some of my earlier analysis suggested a good target bottom for the SPX is in the 1037-1041 range. With a little more than 20 minutes to go in today’s session, we are just a couple of points away from the top of that range.

Disclosure: Short VIX at time of writing.

blog comments powered by Disqus
DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2023 Bill Luby. All rights reserved.
Web Analytics