VIX is breaking down
Well, it looks like the Cramer indicator nailed it back on March 5th. The indicator jumped up and down on TeeVee advising the public herds about the 5 stages of grief. The market immediately rebounded but then we did have more volatility. Now? Not so much.
NFTRH 648’s Sentiment segment had this to say regarding the following weekly chart.
“As the speculation continues, the VIX is in danger of falling through the floor as it grinds that level against a bulling stock market. Recall that the next target for SPX is around [subscriber content] and ponder what it might do to the VIX if that happens. Ponder the 2020 gap up in the VIX (shaded blue) and whether or not it could fill.”
“That gap up launched the COVID-19 fear trades that are still being remedied to this day.”
“Yes, I make jokes about it. I make jokes about a lot of disturbing things. But tell me, how disturbed would bears be if they fail to crack the market on the recent jitters and pullbacks (conveniently at the lower end of the Continuum’s 2.5% to 2.7% range)?
I am not going to predict [subscriber content], but it has been the next target assuming it would maintain its uptrend. As of March 28th at 10:40 AM as I write this, it has.”
Here’s today’s daily chart of the VIX.
I don’t want to be too cavalier about this, managing a policy stoked speculative bubble and all. But at this moment, the stock market remains bullish and the VIX is indeed posturing to break down and possibly close out the fear of a year ago by filling that gap.
Unbelievable. Caution has been thrown to the wind. Do you remember the terror participants were feeling one year ago? Aren’t markets beautiful sometimes in their symmetry?
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.