After the military actions against Syria, geopolitical uncertainty and the latest remarks of the US President for North Korea, the markets are taking a notice and reacted with decrease of the bullish impulse and lower levels of the indices.
VIX increased up to 15.09 Tuesday, at its highest level since November, 2016. Enormous divergence between the two, equal to 458%. Historically, after a difference of such extreme, there is a possibility of a correction for stocks and increasing of the VIX.
As the VIX index is climbing higher, the volatility is increasing and chances for correction of the indices are getting higher.
Source: Bloomberg
Trader - S. Fuchedzhiev
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