🚨📈 Here is a solid, potential development for the stock market bulls! 🐂

This is a gauge of sentiment that nostr:npub1k6m950rpy2xw04nsgmmdpzjjn76x56wz4nwe3nqgctpwj9y5rzds48rve6 prefers to use to time short to intermediate term bottoms in the stock market.

This chart measures the VIX Term Structure, or VIX calendar spread. In other words, it measures the difference between the spot VIX and the CBOE 3-Month VIX futures.

When this chart closes above 1 we have a VIX Term Structure inversion. The inversion indicates that traders expect the volatility today to be greater than volatility 3 months from now. This generally happens during a panic, as the VIX 3 months in the future should naturally always be greater, given we have no idea what could transpire in the future but we are well aware what is happening in the world today.

A buy signal is generated when the chart closes back below 1, indicating that the term structure inversion is over and traders have digested whatever panic or worry led to the inversion.

As of right now, today could generate a buy signal as the chart is currently falling back below 1. However, we must wait for a confirmation on the close before the buy signal is actually issued.

#VIX #VolatilityIndex #stocks #investing #trading #SPY #QQQ