Just pointing it out. Its not often you see that on a day when the indexes are (were) up as much as they were.
I took 6 points btw at 52.25
___________________________________________
From August last year.
https://www.marketwatch.com/story/w...he-vix-may-be-a-problem-for-stocks-2018-08-28
Dana Lyons, a partner J. Lyons Fund Management Inc., thinks this divergence deserves closer scrutiny given that such disconnects have previously heralded tough times ahead for stocks.
Lyons pointed out that the S&P 500 SPX, +0.38% closed at a record on Aug. 21 but the VIX VIX, +0.45% ended at more than 40% above its 52-week closing low of 9.14 from November.
This has happened only three other times in the past two decades, and those were all followed by some “very inauspicious times” for equities, he said.
As the chart below shows, similar divergences occurred from December 1999 to March 2000, April 2007 to October 2007 and December 2014 to February 2015, and short-term returns following those occurrences were quite dismal, with median returns of negative-11.3% in the following year.
J. Lyons Fund Management Inc.
“We have seen these divergences take time to play out into negative ramifications during events in the past 19 years. However, overall, this divergence has been an extremely consistent and accurate warning sign eventually for stocks over the past two decades,” he wrote on his blog.
And in regards to and complimentary to this article, which is beautiful by the way...we would have to break 2500.00 - 2300.00, and stay under...to see BILE GREEN on the VIX.
