VIX reach its lowest value since 1993

4 June 2017, 22:34
Muhammad Elbermawi
0
63

This is a performance chart for the Dow Jones Industrial and VIX. The chart show 5 years of historical performance.

The correlation index between VIX & Dow Jones show negative reading most of the time, which mean that VIX move against Dow Jones. When VIX spike the Dow Jones fall in a downtrend, and when VIX fall the Dow Jones rise.

Through the last 5 years, VIX lost 63% from its value, but Dow Jones gained +75%.

VIX now reached a 25 years low, and Dow Jones is at all times high.

I expect to see a strong move in Dow Jones that reach to unexpected price values before any signs for change in the current trend.


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