Huge spike in the $VIX as the market continues bleeding red.

If you recall our earlier post on the $VIX  (https://www.imdeadbroke.com/vix-backwardation-feb-2-2018/), the $VIX was in backwardation between the Feb and March expiration and returned to contango during future months. However, today the $VIX is in backwardation through August which could be indicative the market is preparing for a more volatile 2018.

As we’ve stated numerous times over recent months, a correction or even crash will be healthy for the long-term viability of the trend. Lastly, the markets blew through a key support level today ($2,673.61) by closing at $2,648.94. The next levels I’m keeping an eye on are $2,624 and $2,604. However, with the government look at a second shutdown in recent weeks, we could be looking at reaching a full correction sooner rather than later.

 

$VIX chart as of Feb 5th

(Source: VIXCentral.com – $VIX chart as of Feb 5th)

 

Update – During Market (2/6/2018)

The SP500 ($SPX) is holding strong at the 2622 level in trying to find new support. This occurred after the market was pushed down to near corrective levels ($2580) shortly after open. If we don’t hold support at the $2580 level, the next significant level of support will probably be the 200 day SMA.

Keep checking back for our next update – things are getting exciting!

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Huge spike in the $VIX as the market continues bleeding red. If you recall our earlier post on the $VIX  (https://www.imdeadbroke.com/vix-backwardation-feb-2-2018/), the $VIX was in backwardation between the Feb and March expiration and returned to contango during future months. However, today the $VIX is in backwardation through August which could...