Recent VIX pullback suggests further upside for S&P 500 Index

Probability Trader

www.probabilitytrader.com

Recent VIX pullback suggests further upside for S&P 500 Index. We note that VIX has just posted a solid 5-day retreat of -20% plus with its closing level of 14.51 being at the lower quartile of all VIX daily closing prices since 1990. So according to this measure, fear, is actually below average levels. This recent VIX weakness was accompanied with a solid 5-day advance for the S&P 500 of just over 3.50%. Similar market setups have historically coincided with further S&P 500 gains. Since 1990, a 5-day fall in the VIX of more than -20%, with a VIX closing level below 15, & a concurrent 5-day S&P 500 increase of 2.5% plus, produced an average 10-day return of 0.85% for the S&P 500 Index with a robust win rate of 14 from 16. Full data analysis & tables can be viewed at (VIEW LINK)


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Probability Trader
Quantitative Research Analyst
www.probabilitytrader.com

Probabilitytrader is an independent financial research group that provides objective analysis for traders of Global Stock Market Index CFDs, ETFs, Futures, and Options. Our forward looking analysis covers timeframes as short as 1-day to as long as...

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