Wednesday’s Volatility Crush (by Strawberry Blonde)

By -

With today's (Wednesday's) "gap-up-and-go" action on the SPX, RUT, and NDX,
volatility got crushed, as shown on the three Daily ratio
charts
below.

The SPX:VIX ratio closed just
above trendline resistance. I'd say, if price can hold above
95.00, it has a good chance of going higher, provided the
Momentum indicator stays above the zero level now.

The RUT:RVX
ratio
closed at major resistance. I'd say, if price can hold
above 46.00, it has a good chance of going higher, provided the
Momentum indicator stays above the zero level now.

The NDX:VXN
ratio
closed in between trendline resistance and support. I'd say, if
price can hold above 150.00, it has a good chance of going
higher, provided the Momentum indicator stays above the zero level now.

As shown on the
Daily charts below, and looking at a bigger picture, there is
still plenty of room in a larger channel from the June 2012 lows on the SPX and
NDX before they hit their upper channel, while the upper channel is much closer
at around 890.00 on the RUT. Whether the RUT hits its upper
channel and continues to run higher without either consolidating or pulling back
remains to be seen, if the SPX and NDX continue their rally…one to
watch for continued leadership, particularly after making it's all-time
high/closing high today
.

Share this post: