The S&P 500 and NASDAQ hit new highs yesterday, while the DJI fell short but this move higher does seem to want to stop. We had new highs in FB, MSFT, GOOGL, and AAPL and AMZN getting closer and closer to their all time highs. The VIX, however, moved sideways to up most of the day. That is counter to what typically happens. The VIX is still higher this morning. That tells me that either there is still some fear with market participants, which can be bullish since investors may not be all in. Or, there may be something on the horizon that will stall this rally. Kind of confusing, right? What I do know is that market corrections typically happen when we feel like the coast is clear and you can’t go wrong buying anything and everything. At those times, the VIX falls dramatically and stays down for several sessions. Then it’s time to worry. For now, we have a reluctant bull market that will most likely continue to chip away at new highs.
Talk soon,
Al Losada
Founder | SimpleOptionStrategies.com
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