S&P500 / VIX - Black Swan Incoming? 🔮
Taking a look at the SP500 Daily with our US Equity Gaps indicator, next to the VIX Weekly.
Looking back to the start of 2022, we can see a series of "controlled" selling, on our grind from the 4700s, down to 3500-3600.📉
Compare that to the VIX , we can see the stock market has yet to experience a true black swan. See the 2020 mega spike in the VIX .
Whether it's due to geopolitical tensions, financial data, etc., we'll see. But you can almost feel that the market is teetering on a knife's edge. Or at least that's how we feel! 😬
Throw these against the Equity Gaps indicator, and it shows we have plenty to fill to the downside.🤯
Who knows. Maybe we're just being cynical. However, we feel there's a 10-30% downside vs a smaller 1-5% upside.
If that's the case, we're happy to be sitting on our hands for the time being.
-TucciNomics
Chief Overlord, AlgoBuddy