The movement of the VIX has been puzzling many people over the last few months, particularly in not confirming market lows with increased upward spikes. Let’s look at the current structure of the VIX and where we’ve come. Remember, the S&P (and other US Equity markets) hit new lows in October (2008), November, and March. …
With the S&P 500 at new lows not seen since 1996 – clearly surpassing those lows made in October and November 2008, you would expect the Volatility Index – or VIX – to be making new highs as well. It’s not. Let’s look at the VIX and see what clues it might be telling us….
The VIX (Volatility Index) inflected off 2008 lows and support just as the US Stock Market met resistance, which set up a nice confluence that could have clued you in to odds of lower prices in the broader indexes recently. First, let’s see the Weekly Chart to see when the last time we reached these…
Today marked a day of relative indecision for the US Stock Market. The Dow & S&P are trapped just beneath their 200 day moving average, and formed a strange doji pattern at this level, while the VIX reached new lows for the year. Let’s look at these developments: S&P 500: The NASDAQ actually closed higher…
The $VIX (Volatility Index) is bouncing off new lows for 2008 in a sign that traders and funds have become less fearful in the current market environment. Perhaps they are unwinding their hedges or engaging in some sort of risk-seeking or ‘cooling off’ period, but it is interesting to note that it took the VIX…