The "VIX" or Market Volatility index is right back below our upward trend and this could influence equities to the "buy" side. The broader-market indexes are in the green and are showing some signs of stability on their 60-minute charts. The 30-year Treasury bond (TYX.X) is trading flat and currently yields 5.445%. The Gold/Silver Index (XAU.X) is trading lower by 1%. These three indexes are all good indexes for traders to keep an eye on and recently their interaction has been pretty accurate for investor psychology. Currently they indicate the market is beginning to get a little more comfortable short-term.
Market Volatility Index Chart - 60-minute interval.
The VIX.X is back below our upward trend. For the most part, lower levels reflect a more bullish tilt toward the market and higher levels are experienced as put buyers show up by the droves to hedge positions or jump on board a downward move in stocks. The four-session low is 31.28 and that's where we will set an alert to give us the potential heads up for a rally to build. We won't use this index by itself, but can use it as one indicator to alert us to a move in equities.
30-year Treasury Yield Chart - 60-minute interval.
Traders may also be able to use the yield on the 30-year Treasury (TYX.X) to their advantage as an "upside" alert for equities. If the yield on this bond were able to get above its seven-session high yield of 5.485% that might serve as short-term "confirmation" that our downward trend for yield has been broken and influence equity bulls to get a little more aggressive with their buying.