Just a quick update on my price/volume diffusion index and the weighted average standardized VIX. My Price/Volume Diffusion Index has turned away from the 50 demarcation, increasing to 54.58.
This is as the market has rallied over the last few weeks. This is mainly a price driven move, as the volume levels has been anemic relative to the supply lines established on the decline. That said, this suggests the bias remains to the upside. For now.....
This is as the weighted average standardized VIX (WASV) remains pointedly bearish.
The WASV approached and pulled back from a 2 standard deviations. The WASV is suggesting an increase in risk levels. The pullback off the 2 standard deviation in recent days suggests some alleviation of this, but extreme level (over 2) failed to occur, meaning that the crescendo in the rise is risk levels may still pass.
Additionally, the skew in the VIX continues to decline.
A reduction in the positive skew means the VIX is moving towards the central tendency, i.e. a higher VIX.
This is as the market has rallied over the last few weeks. This is mainly a price driven move, as the volume levels has been anemic relative to the supply lines established on the decline. That said, this suggests the bias remains to the upside. For now.....
This is as the weighted average standardized VIX (WASV) remains pointedly bearish.
The WASV approached and pulled back from a 2 standard deviations. The WASV is suggesting an increase in risk levels. The pullback off the 2 standard deviation in recent days suggests some alleviation of this, but extreme level (over 2) failed to occur, meaning that the crescendo in the rise is risk levels may still pass.
Additionally, the skew in the VIX continues to decline.
A reduction in the positive skew means the VIX is moving towards the central tendency, i.e. a higher VIX.
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