As the below chart shows, the fear index, or VIX, has declined to just above 17% versus 80% in October of 2008. In the recent past, a low level on the VIX has been indicative of a top in the market. However, when looking at the 2008 time period, the VIX has declined to the 10% range.
If the market can form a base around the 1,220 level on the S&P 500 Index, this would be constructive for further advances in the market on a prospective basis. The 1,220 level would support the break out level of the cup and handle chart formation as discussed in yesterday's post.
If the market can form a base around the 1,220 level on the S&P 500 Index, this would be constructive for further advances in the market on a prospective basis. The 1,220 level would support the break out level of the cup and handle chart formation as discussed in yesterday's post.
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| From The Blog of HORAN Capital Advisors |
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