Fear Enters The Market
The market is still open as I write this but I wanted to point out an observation that may be significant. Above is a chart of the S&P500 and in the lower panel is the VIX. The VIX is a good measurement of fear and complacency. What I find significant is that the S&P has made a much higher low than yesterday but the VIX has taken out yesterday's high. This tells me that there is a great amount of FEAR in the market, much greater than yesterday. From a contrarian point of view this could be somewhat BULLISH indicating that we may see a bounce but it is way too soon to make such a bold call.. Lets see how the market closes and we'll take it from there.
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2 comments:
"Lets see how the market closes and we'll take it from there. "
ok kevin, can we have a follow up on this? thanks
Hey D-man,
I don't see anything worth reporting. The VIX did manage to post a new high close but the S&P wasn't able to do much for the rest of the afternoon. We'll just have to wait for Monday and see what happens. I'm not going to guess here for the sake of giving an opnion.
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