VIX’s Latest Tower of Agony

VIX just completed its 4th agonizing (if you are actively bearish) spike and drop since the March, 2020 crash

These squalls of angst that erupt out of nowhere serve to reset wickedly over-bullish market sentiment in little micro bursts of angst. The market was hideously over-bullish as we projected some corrective disturbance in line with long-term yields that were due for a cool down. Then came tower #4.

The market is still structurally over-bullish and running on bubble dynamics. As such, it can blow itself up at any time based on contrarian sentiment (a notoriously poor timer). But the worse news for bears could be the length of time between the shaded towers on the VIX. In the most compact instance a late October tower followed an early September eruption. The other two gaps were around two months in duration.

Just the latest installment of Fun With Indicators. You too can play along at home!


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