📈 Are We Bottoming?

This signal typically marks bottoms.

Watch This Signal

In the below chart, you have the S&P 500 overlayed with the VIX 3-month / VIX 1-month on the bottom.

This is a method traders use when we have high volatility events to see from a relative perspective where we are at in relation to historical sell-offs.

You can see that we are at a support level for the VIX 3M/VIX 1M. I marked off each of the times we have reached this level, and you can see that it is fairly accurate at predicting bottoms in the market.

Does it mean we always start going up right away? No. But it’s pretty clear what the chart is telling you.

I thought this was pertinent to keep an eye on and wanted you all to see it. I walk through my interpretation of it in more detail here: