The SPX daily chart is about to confirm another death cross where the 50 MA crosses below the 200 MA. We can see in the chart below when the MACD crosses up on the VIX, you can see a very sudden rise in volatility on the SPX chart. We have also been seeing a series of higher lows on the VIX since mid 2015. The Fed basically had control of the market since the start of 2013 via various proxies and market interventions so they could make a smooth exit from QE when the time came. Could it be that the control has now been lost and we are seeing a return of price discovery? Time will tell.
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