Risk-off Sentiment Pushes the S&P500 – Volatility Index Testing 25

The VIX (Volatility Index) which measures the level of risk in the market, jumped 4.52 points to close at 25.23, its highest close since...


Global stock markets fell dramatically on Wednesday as risk aversion continued to dominate the market. The investors continue to respond to the trade war fears, with tech stocks on the radar.

The Cboe Volatility Index (VIX), the most widely followed barometer of expected near-term gyrations for the S&P 500, jumped 4.52 points to close at 25.23, its highest close since February 12. The S&P 500 fell for a sixth consecutive day.

This shows a rising level of risk aversion. The risk aversion is keeping investors out of the stock markets. For your info, VIX shares a negative correlation with the stock markets. The higher value of VIX represents a higher level of uncertainty and, as you know, uncertainty is something investors really don’t like.

In order to cope with this situation, we have spotted the trading levels.

Support Resistance
2633.15 2730.06
2593.81 2787.63
2496.9 2884.54
Key Trading Level: 2690.72

The S&P500 is coming out of the oversold zone, as you can see on the hourly chart below, the RSI is crossing above 50. This indicates the potential of a bullish reversal and that’s exactly we are trying to capture. SPX can find an immediate resistance at $2,685 (38.2% Fibo Level) and $2,696 (50% Fibo Level). Fellas, in between $2,685 and $2,696, the S&P500 can face a strong resistance at $2,690.

Good luck and trade with care!

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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