Current ES Pattern - Arms Index And Vix Movements Crossing Support Simultaneously

1:00pm EST: Likely SVXY needs to overlap the gap as it has now technically filled the opening from the 11/24/21 drop. Possibly another 1% or thereabouts. If the high from 11/4/21 is taken out in SVXY, then an updated analysis will be required.

Upper chart- market has no confirmed direction without a valid turn signal. The last one was at September '21 lows.

In the chart shown at the bottom, for visual ease, the inverse of ARMS and VIX is used to keep movement correlations consistent to the market ups and downs.

This background study using the inverse ARMS index [200ma] vs inverse VIX may be telling us something important to watch. Typically the daily inverse ARMS index 200ma has been a good indicator of market potential set ups. Only on one occasion has it continued going upwards at a major top. The majority of the time it has continued moving down [ARMS index numbers increasing] at tops similar to the current situation.

Frequencies:

At these degrees, calendar days generally are more reliable targets than number of sessions- VIX low: 4/21/20 <+282 cal days> VIX low: 1/27/21 <+282 cal days> =11/4/21 SVXY high currently holding for more than six weeks is confirming it to likely be a 'primary 1' frequency span. New lows ARE PRINTING in VXX so either that is a positive market divergence or it's a capitulation signal. Without a turn signal, it could be either one: Schrodinger's cat. However- recent daily closing numbers are trending towards capitulation which often creates a small, minor top, perhaps, as in a 'iv' pullback.

A 'primary 2' frequency span centered on 1/27/21 [=12/10/21 +/- 1] has not printed a new SVXY high. It did print a lower high inside the start of the expanding triangle [diamond?] in ES futures on 12/13/21 [12/10+1 session]. There does not appear to be another medium term frequency imminent since the 2020 decline. These two developments could be a red flag for the market going forward.

The bots will flag here when they see a top. (1/25/20, 2/20/20)

This Information Is For Entertainment Purposes Only. Financial Loss Can Occur From Investing.

Our favorite go to site- McVerry Report