S&P 500 BREAKS CHART SUPPORT AS THE VIX SURGES -- FALLING DOLLAR PUSHES GOLD HIGHER
S&P 500 BREAKS SUPPORT AS VIX SURGES... Election jitters are taking a toll on stocks. Chart 1 shows the S&P 500 falling below its September/October lows to a four month low. All other major stock indexes are falling as well. That leaves the SPX in position to retest its 200-day moving average. All eleven stock sectors are in the red with the biggest losses in cyclicals, technology, industrials, utilities, and REITS. The CBOE Volatility (VIX) Index is jumping 15% as stocks fall. Chart 2 shows the VIX reaching its October high around 20. A weaker dollar is pushing gold prices higher. Bond prices are also bouncing.
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Chart 1
