Since I posted this chart of VX3M:VIX ratio, warning clients Mon & Tues that I was expecting it to fall and pull down markets, I wanted to share some thoughts on how it differs from the August 5th low, even if it ultimately fell to the same place.
From Monday:
“My VIX3M/VIX ratio is forming a bearish head & shoulders pattern that will trigger as it falls/stays below 1.20.”
To now:
They may look similar, but they couldn’t be more different… and please notice how SPX hasn’t caught down to this ratio, yet.
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