Tick divergence and premium example
Tick leads market lower on the day of rate cut
Tick screen shows ticking weakening before
S&P
on day they cut rates (3/20/01)
VIX with the S&P
VIX is the option volatility index. The VIX tends to move in the opposite
direction of the market (S&P). A VIX above 36 typically signals an extremely
over-sold condition, or recent sharp drop in equity prices. The VIX can also be
used to measure fear, and is also often referred to as "the
fear-level" indicator. The
higher the VIX, generally the more fear there is in the market place.
