S&P 500 volatility

The S&P 500 again respected primary support at 2550. Twiggs Volatility Index is retreating but a trough that forms above 1.0% would warn that market risk remains elevated.

S&P 500

2 thoughts on “S&P 500 volatility

  1. Solomon says:

    Off-topic post by Solomon that better relates to this thread:

    The Hubris trap = similar to the current Bull trap, I say.

    And, in the above regard, note how:
    1. The relative proportion of bulls to bears yet remains elevated after the bull run over the last nine years, despite the *canary* in the coal mine warnings of the last 2 and 1/2 months, as some of the major indices fell almost ten percent ;
    2. The general preponderance of *hopingly* bullish / can’t see the wood for the trees / speaking to their book / afraid to confront taking risk-adjusted positions / procrastinating commentators, ignoring the above and similar market actions ;
    3. These market actions include :
    a) The ASX bearishly making lower highs and lower lows on the way down since the first week in January ;
    b) The raised VIX indicators continuing to correctly reflect / warn about increased uncertainty and risk in the fundamentally changed interest rate, political and economic paradigm ;
    c) The significant longer-term moving averages being breached in the case of American equities ;
    d) The upward trend of American shares since 2016 being breached on the down-side ;
    e) The important shifts in the regulation/scandal-related valuation metrics of the FAANG-family of companies.

    Expecting a further meaningful continuation of the bull markets in equities is without sufficient support, given the risks, the charting/technical picture and the grossly over-valued nature of American shares.

    Sell shares, on a medium-term horizon, to the extent of 70% of current holdings. The risks outweigh the potential rewards, as the markets are telling us – don’t fail to see that.

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