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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