S&P 500: Light Volume Test Of Monday’s Low Suggests Technical Bottom Is Forming
2022.04.27 18:27
- S&P 500 Monitoring purposes; Long SPX on 3/25/22 at 4543.06.
- Monitoring purposes Gold: Long GDX (NYSE:GDX) on 10/9/20 at 40.78.
- Long Term SPX monitor purposes; Neutral
We updated this chart from yesterday, when we said:
“The top window is the 2 day (Rate of Change) for the VIX; readings above 25 on this indicator (current reading is 26) suggests a low is near; happed 8 times since last May with one failure which works out to 88% success rate. The pattern forming on SPX could be a Head and Shoulders bottom where the Right Shoulder is completing now. This potential Head and Shoulders bottom has an upside target to 5150 which would be a new high. Don’t have it shown but NYSE Summation index needs to see +1000 range near mid May for a bull market signal (on a previous report) for 2022 other wise sideways market at best this year.”
Added to the above, today’s light volume test of Monday’s low is a bullish sign suggesting bottom is forming. 
VIX measures the fear in a market and the VVIX is the VIX of the VIX. So the VIX/VVIX ratio is a good indicator that can define panic and panic only forms at bottoms in the market. The acceleration of the VIX/VVIX ratio helps to pin point where all the panic is occurring.
The bottom window is the “rate of change” (ROC) of the VIX/VVIX ratio and high readings above +10 suggests panic (high came in yesterday +15). Next window up is the Percent B. The percent B shows when it above its upper Bollinger Band (>1) or below its lower Bollinger band (
