Dylan O'Neill shows how to read the VIX alongside S&P 500 moves to spot real selloffs versus fakes. When the S&P breaks below recent lows while VIX stays elevated, it signals institutional selling. Algo trading drives 90% of futures volume, making this inverse relationship crucial for gauging where the market actually stands.
The total volume in the United States for The S&P 500 futures is made up of 90%. Algorithms,
really.
Algorithms buy and sell programs are directly tied to the pricing of the
Learn exactly how this Wall street trader uses the VIX to trade the S P welcome Dylan o' Neill to Chart Fanatics.
S P in a downtrend when the VIX is in an uptrend, usually that will be the case. And if that is the case, we have an edge when it comes to adding a layer of technical analysis because what we're looking at is we're looking for areas of
in this episode, Dylan shows the exact use of the VIX and how volatility can showcase exactly how institutions are positioned.
Using the VIX prevents you from potentially getting faked out. A nice high probability setup looks like this, where you have the S and P breaking below the lows. You also have VIX showing relative
investors and traders alike will refer to the VIX as the Fair Index as it gives you an exact measurement of the level of fear or stress in the market.
If you stripped the VIX away from me personally, I would have a hard time analyzing the S and P movements. So. So this is a prime example of a trade setup that I would take 10 out of 10 times.
I was just thinking about when I saw this and as we've gone through this, who knew that Wall street the secret really is. Dylan dissects the exact use of the VIX and its impact onto the S and P futures.
