SP500 AND VOLATILITY

Most of the time, there is a correlation between the SP500 index and it's volatility. As you can see in the chart, a trend reversal occured in SP500 almost everytime VIX dipped.

Now, SP500 is at a major resistance and the VIX is at the lowest level of the recent time. It wouldn't be surprising to see a reversal for SP500 at this point.

Where can be a recovery level if a reversal occurs now? There are two strong support levels below the price, thinking the SP500 is greatly sensitive to weekly averages. I think recovery point will be either one of the below.

• Where the 20-weekly MA (thin one) and 0.382 of the last impulse wave coincides
  
  
• The area between the 50-weekly MA (thick one) and 0.618 of the last impulse wave.