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Market sentiment
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Wouldn't that alone explain why volatility spiked?Just wondering how the market sentiment is calculated on this website
It shows it as bullish while the VIX has spiked up and SPX went down about 200 points in about a week
Thanks! That's not at all my understanding (which, of course, may be completely wrong)...but if the price suddenly moves UP say, two standard deviations that's exactly the same amount of VIX increase as if it suddently moves DOWN two standard deviations. VIX doesn't care about DIRECTION, it cares about DISTANCE from yesterday's price compared to what that daily distance is on average.Not sure I understand what you are saying
If volatility spiked I would expect a more bearish sentiment rather than a bullish one I guess it's more like less bullish then previous but still in the green
Well that's not what happens in reality
Most of the time when VIX is up is because the market is going down so most traders are rushing to get out that is why it is called the fear index
when the market goes up the VIX usually goes down since there is no fear of going up On rare occasions when the market goes up and the VIX also goes up it could indicate a turn in the market but that is rare
Most of the time when VIX is up is because the market is going down so most traders are rushing to get out that is why it is called the fear index
when the market goes up the VIX usually goes down since there is no fear of going up On rare occasions when the market goes up and the VIX also goes up it could indicate a turn in the market but that is rare
I think Status's question is that if VIX is up and SPX is down, why does the meter still show bullish? The Contango % is also getting low which is another indication of risk/be cautious. I have wondered how the sentiment indicator is calculated. The VIX and SPX relationship is reacting normally, the question is why isn't the sentiment indicator reflecting it.Thanks! That's not at all my understanding (which, of course, may be completely wrong)...but if the price suddenly moves UP say, two standard deviations that's exactly the same amount of VIX increase as if it suddently moves DOWN two standard deviations. VIX doesn't care about DIRECTION, it cares about DISTANCE from yesterday's price compared to what that daily distance is on average.
Good to know! Thanks!I think Status's question is that if VIX is up and SPX is down, why does the meter still show bullish? The Contango % is also getting low which is another indication of risk/be cautious. I have wondered how the sentiment indicator is calculated. The VIX and SPX relationship is reacting normally, the question is why isn't the sentiment indicator reflecting it.
Good to know, thanks!Well that's not what happens in reality
Most of the time when VIX is up is because the market is going down so most traders are rushing to get out that is why it is called the fear index
when the market goes up the VIX usually goes down since there is no fear of going up On rare occasions when the market goes up and the VIX also goes up it could indicate a turn in the market but that is rare
According to the CNN fear and greed index it shows it as 28 in the fear section Of course it's not the same calculation but still it's not bullish
A week ago it was at 34 so a little higher but still in the fear section The one at Aeromir was at 23 when I noticed it on Thursday in the bullish section and now it's at 32.98 just on the borderline between bullish and caution
On the other hand there is no bearish section so I guess it's a matter of degree of bullishness SPX could go down another 1000 points and it would say maybe caution or volatile but still not bearish just not as bullish as before
A week ago it was at 34 so a little higher but still in the fear section The one at Aeromir was at 23 when I noticed it on Thursday in the bullish section and now it's at 32.98 just on the borderline between bullish and caution
On the other hand there is no bearish section so I guess it's a matter of degree of bullishness SPX could go down another 1000 points and it would say maybe caution or volatile but still not bearish just not as bullish as before