Each candle on the following three charts of the S&P 500 Index represents:
- a period of one month (Chart #1)
- a period of one quarter (Chart #2)
- a period of one year (Chart #3)
Each of the last candles on all three time frames closed higher than its prior time-period candle.
The most notable feature of the Yearly chart, in particular, is that price could, in fact, reach a resistance target of 3033 (as I described in my post of August 6th) by the end of this year. Such a price level would end up producing a candle range for 2018 on the Yearly timeframe that equals or slightly exceeds the candle range of each of the prior two years. It would also complete a very bullish cycle for this year.
|Monthly chart of the SPX|
|Quarterly chart of the SPX|
|Yearly chart of the SPX|
Each candle on the following three ratio charts of the SPX:VIX Ratio represents:
- a period of one month (Chart #4)
- a period of one quarter (Chart #5)
- a period of one year (Chart #6)
I’ve mentioned several support levels over the past year…notably 150 and 200, as shown on the Monthly timeframe. Price is slightly below the “Bull Froth” level, but is above the “New Bull Market” level of 200. 280 represents a major hurdle to be reached and overcome on this ratio.
The Yearly chart shows how volatile price action has been this year, as evidenced by the massive 2018 candle range, and by the multiple re-tests of each of the candles on the Monthly timeframe.
|Monthly Ratio chart of SPX:VIX|
|Quarterly Ratio chart of SPX:VIX|
|Yearly Ratio chart of SPX:VIX|