Mark Shore
August 23, 2016
Mark Shore @ Shore Capital Research LLC
Chief Research Officer, Shore Capital Research LLC; Adjunct Professor, DePaul University, Doctoral Candidate

What Does A Widening VSTOXX / VIX Spread Mean To The Underlying Equity Markets?

Summary

  • Over the past week the VSTOXX / VIX spread narrowed and then widened as the EURO STOXX 50 Index declined.
  • A one and two standard deviation move would price the spread between 8.8 and 12.5.
  • As a sentiment indicator could an overbought VSTOXX / VIX spread imply at least short-term support in the EURO STOXX 50 Index & the S&P 500?

My recent article " VSTOXX / VIX Spread May Imply An Equity Correction " discussed some of the basics of the spread and potential signals it may offer about the underlying EURO STOXX 50 index and the S&P 500 index. I received a lot of positive feedback and demand for this analysis, so I will be updating the spread data and analysis on a regular basis. Think of the spread READ MORE

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