Stock Target Price

Stock Target Price
Using the 10 Day Moving Average of the VIX ( Volatility Index ) to time a Reversal in the the S&P 500 Investors can get an idea of when the market may reverse when the 10 Day Direct Average ( MA ) of the Volatility Index ( VIX ) becomes significantly stretched at once from its 10 Day Moving Average ( MA ). A simple exemplar is shown below which can compare the 10 Day MA of the VIX to the S&P 500. Notice when the VIX got continued significantly away from its 10 Day MA ( blue line ) to the upside ( points A ) that the S&P 500 made a bottom ( points B ) and consequently reversed to the upside. Thus keeping track of where the Volatility Index is in relation to its 10 Day Moving Average can give investors a clue to when the market may be getting suffocating to a eventual term bottom and probable upside reversal.

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