Respect That 2940 Top On The S&P 500April 17, 2019
Market Recap for Tuesday, April 16, 2019
It was just another day of boring gains. But that’s what happens during bull market advances. The Volatility Index ($VIX, -1.14%) drifts lower and stock prices edge higher. Remember when the VIX topped out with a close above 36 on December 24th? It seems like forever ago as the VIX closed yesterday at 12.18. I’ve written on many occasions that the VIX never closed below 16 during either of the past two bear markets. With a VIX currently near 12, it’s almost a foregone conclusion that we’ll be breaking out to fresh 52 week and all-time highs sooner rather than later. In my opinion, you can let go of any bearish thoughts you might still be carrying. It’s just an opinion, not a guarantee, but bear markets require fear and the falling VIX signals that there isn’t any. None of this means we won’t see periods of selling, but I’d be a buyer into those periods.
Source of this (above) article: http://blogs.stockcharts.com/articles/tradingplaces/2019/04/respect-that-2940-top-on-the-sp-500.html