etfmsolutions: XIV / SPY Divergence.....03.07.15

Saturday, March 7, 2015

XIV / SPY Divergence.....03.07.15

Looking at the VDx charts for SPY and XIV shows the disparity in signal correlation. The VDI +/- chart clearly shows that Friday's was plunge was where the odds lay, whereas the XIV version is much more ambiguous.
I mentioned on the M3 site that I was expecting a relief rally on Monday (with a caveat) and the MO2 pairs model of SPY/UPRO, which has been a solid performer for the past 2 years, has flashed a new bullish signal as of Friday's close.(see below)
The TrendX (right side panel) is still not not to support levels, which is one reason that the pairs signal may be a bit premature, but there it is for the record.

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