etfmsolutions: VDX Updates and a NEW PV Chart layout....05.01.16

Sunday, May 1, 2016

VDX Updates and a NEW PV Chart layout....05.01.16

This week's VDX updates offer a mixed bag forecast of things to come. Earnings reports and guidance are still driving momentum and here's the Schwab perspective for next week.
Work continues on the price/volatility (PV) indicators and the latest iteration of the chart is shown below. Note that the ATR and PCL metrics have been separated into 2 distinct outlier charts with price in the middle chart. The OC indicator study has been deleted for the time being.
The PCL and ATR were separated in part because I realized that the PCL tends to be a leading indicator and the ATR is more of a confirming signal.
I've added interactive threshold levels and a rolling vertical alignment line to instantly see when the threshold crosses are in alignment with impending price action.
The position of the dashed green vertical line on the PCL and ATR charts is situated at a technical position that closely resembles the current PCL/ATR.
Note what happened to SPY price the last time the .8% threshold was breached to the upside.

Commentary and Updates

Mosaic Solutions commentary is typically published daily as time permits and market action warrants.
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