The VIX is also known as “the fear index.” If you aren’t watching the VIX on a daily chart, with Bollinger Bands, you are probably out of touch with the market. Look at LRCs for support and resistance. If VIX gets extremely high, look for a market bounce the next futures, and vice versa.
SKEW measures perceived risk of a move 2 standard deviations or more. That is, “a market crash.” The value of SKEW increases as perceived “crash risk” increases. Historically, the range has been between 100 and 150, with an average value of 115. When the SKEW gets over 135, look for prices to top out and […]