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Thursday, August 16, 2012

SPX/VIX > 80 Probability

I'm still patiently waiting for the set-up.  The potential is still there that this breaks 1422 and a new bull trend is established.  But right now, it's a nested rising wedge within a rising channel, trying to break through trendline from 2007. 

One ratio that has been reliable for me in the past is SPX/VIX.  When this ratio stays above 80, the probability of decline increases with each passing day.  Back in April, it hit 100% and sold off.  So if we stay above 80, below are probabilities after each trading day.


Probability Of Down   Date
1 TD later 67% 3-Aug
2 TD later 50% 6-Aug
3 TD later 42% 7-Aug
4 TD later 57% 8-Aug
5 TD later 61% 9-Aug
6 TD later 57% 10-Aug
7 TD later 65% 13-Aug
8 TD later 65% 14-Aug
9 TD later 70% 15-Aug
10 TD later 74% 16-Aug
11 TD later 74% 17-Aug
12 TD later 74% 20-Aug
13 TD later 83% 21-Aug
14 TD later 78% 22-Aug
15 TD later 83% 23-Aug
16 TD later 83% 24-Aug
17 TD later 87% 27-Aug
18 TD later 83% 28-Aug
19 TD later 91% 29-Aug
20 TD later 91% 30-Aug
21 TD later 100% 31-Aug
22 TD later 100%  
23 TD later 100%  
24 TD later 100%  
25 TD later 100%  
26 TD later 100%  
27 TD later 96%  
28 TD later 96%  
29 TD later 96%  
30 TD later 96%  

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