SPX-to-VIX Ratio
§ How to use SPX/VIX?
§ In range markets, it pinballs between the Keltner channel boundaries (or Bollinger Band boundaries), flagging overbought/oversold conditions and potential reversal points.
§ In strongly trending markets, it moves between the mid-channel and outer boundaries, and such behavior is an indication of a strong trend, similarly to when RSI is embedded in the oversold/overbought range.
§ Right now, the ratio is headed toward the upper Keltner.
§ Since we are still in a sideways market, I expect the ratio to reverse from the upper Keltner or from not much away from it. This should align with a short-term SPX reversal.
