Hello bears. Well, let’s not speak too soon. We remain in an uptrend as long as we continue to make higher highs and higher lows; therefore a break of $1020 on the S&P500 would be the technical pivot to break our uptrend. While we remain reactive rather than try and predict market moves, last week’s actions certainly had a bearish flair to it.
As the old saying goes, “When the VIX is low look out below.” The VIX rallied off its low of $20.10 to put us back into the 30s, breaking the prior high along the way. Higher volatility leads to higher fluctuation in price while lower volatility leads to less fluctuation in price.