My latest article for TraderPlanet has been posted. This week I take a look at the unusually low reading in the Volatility Index (VIX) for a market bottom to be created off of. I look at historical readings of the VIX during previous market bottoms and discuss why we might still see lower equity prices in the coming weeks.
Here’s an excerpt:
With the S&P 500 currently being considered ‘oversold’ by various technical indicators and market participants, we have not seen the inverse reaction in volatility, with the VIX sitting under 16.50 at the end of last week. We can assume with this low of a VIX reading that traders have not been buying protection for their portfolios, making the assumption that there isn’t a build up of ‘fear’ in the equity market.
Click over to read the rest: The Fear Index: What Does it Say Now for Stocks? (TraderPlanet)
Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.
