Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

GoldSeek Radio: Dr. Raymond Moody and John Williams, and Chris Waltzek
By: radio.GoldSeek.com

Technical Scoop - Weekend Update September 24 2018
By: David Chapman

What Comes Next
By: Adam Taggart

China for the Trade Win?
By: John Mauldin

US/Global Stocks, Commodities, Precious Metals and the ‘Anti-USD’ Trade
By: Gary Tanashian

Central Bank Gold Purchases Now Control 10% Of The Total Market
By: Steve St. Angelo

Good, Bad and the Not-So-Ugly in Gold
By: Rick Ackerman

Gold Seeker Weekly Wrap-Up: Gold and Silver Find Modest Gains on the Week
By: Chris Mullen, Gold Seeker Report

Gerald Celente: Fed May Bring Down the Economy, Crash Markets
By: Mike Gleason

COT Gold, Silver and US Dollar Index Report - September 21, 2018
By: GoldSeek.com

 
Search

GoldSeek Web

 
The Mysterious Mr. VIX

By: Dan Norcini

 -- Published: Thursday, 14 January 2016 | Print  | Disqus 

I must say that I continue to be amazed at how “CALM” things are in these equity markets in spite of the significant chart breakdowns that are now being seen in so many different sectors.

Look at how meager the move higher in the VIX has been especially compared to where it was back in August of last year during the “Flash Crash” that occurred back then.

Chart_16-01-13_13-04-11

Compare the VIX with the S&P 500 chart.

Chart_16-01-13_12-29-18

The Russell 2000 is something worth watching however as this is probably the most “risk sensitive” stock index out there. It not only has fallen through the August lows, but it left the late September lows in the dust last week.

Chart_16-01-13_13-07-15

This is what makes the lack of upward movement in the VIX so mysterious for me. The small cap universe has come unglued ( Russell 2000) with the broader markets threatening to do the same, yet the VIX seems to be YAWNING!

Remember, the VIX measures Sentiment. Right now, while there is certainly concern in the equity markets, there is certainly nothing that could be remotely considered to be fear. If this is a bear market in stocks, it certainly has most traders/investors bored!

Take a look at the intermediate term chart of the Russell 2000. It has now broken down below the October 2014 low.

Chart_16-01-13_13-11-13

Has that created any fear/panic in the equity markets? Nope! I am not sure what to make of this. Quite frankly, I would actually feel a bit better about the stock market if the VIX were soaring. That would tell us that the emotions of fear/panic are soaring and that much of the selling can be traced to panicking investors. That sort of selling tends to run its course, like a flaming meteor, and then abruptly exhausting itself. This sort of “stealth” bear market has yet to generate any of the sort of flaring emotions that might signal an end to the selling.

If anything, we have yet to see any real panic selling. That is what scares me to be honest!

I wanted to take a quick look at gold here and to do that, I am employing the short term 2 hour chart that I have been using of late. The reason is because it shows the support level in the market very clearly as well as the resistance levels.

Remember, we noted that the $1090 level was an important level because it was the low formed on the day of last Friday’s payroll data. The market then bounced away from that level and moved higher but ran into selling above $1107 and then faded. It then came down, retested $1090 and seemed to hold, at least for half a day.

Chart_16-01-13_13-23-39

Notice that after it broke down below that level, it then tested the level from below and failed whereupon it then retreated further and fell all the way to $1080, another key technical level.

Today things got interesting. THE market came up to retest $1090 once more after holding and confirming support at $1080 but instead of failing, this time it breached $1090. That is constructive short term. We now have to wait and see if it can keep its footing above that threshold level. If not, back down to test $1080 again it will go.

Chart_16-01-13_13-23-39

On the upside, there is some lighter resistance that begins to emerge near $1097 and extends to psychological and round number $1100. Above that and $1108 comes into play once more.


| Digg This Article
 -- Published: Thursday, 14 January 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.