Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A technician observes that the CBOE Volatility Index (VIX) is extremely high. At the same time, the technician notes that his other technical analysis tools
A technician observes that the CBOE Volatility Index (VIX) is extremely high. At the same time, the technician notes that his other technical analysis tools indicate the market is oversold. The technician will most likely consider this to be: Group of answer choices Bearish because the VIX, a sentiment indicator, is indicating that market participants fear an impending market decline and this is confirmed by the other tools indicating an oversold market. Bullish because the VIX, a contrarian indicator, is indicating that market participants fear an impending market decline and the other tools indicate an oversold market. Neither bullish nor bearish because the VIX is indicating that market participants fear an impending market decline, which contradicts what the other tools are indicating
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started