• 744 days Will The ECB Continue To Hike Rates?
  • 744 days Forbes: Aramco Remains Largest Company In The Middle East
  • 746 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,146 days Could Crypto Overtake Traditional Investment?
  • 1,150 days Americans Still Quitting Jobs At Record Pace
  • 1,152 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,155 days Is The Dollar Too Strong?
  • 1,156 days Big Tech Disappoints Investors on Earnings Calls
  • 1,157 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,158 days China Is Quietly Trying To Distance Itself From Russia
  • 1,159 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,162 days Crypto Investors Won Big In 2021
  • 1,163 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,164 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,166 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,166 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,169 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,170 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,170 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,172 days Are NFTs About To Take Over Gaming?
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

A Large VIX and NYSE New Lows Scenario Will Be Resolved Very ...

Can the stock market and the futures market be telling two different stories?

Two different stories ... That is what the (daily) NYSE count of New Lows versus the VIX is saying.

The New Lows is a reflection of the stock market, and the VIX is a reflection of the futures market because it is a calculation of the expected movement of the S&P 500 index over the upcoming 30-day period based on option activity.

So, given the above, here is what the two different charts are saying ...

This first chart show's the NYSE New Lows. Its reading on Friday was 25, so there was no evidence of panic selling or fear because any count under 28 is Positive. Please see the next chart ...

NYSE New Lows

This second chart show's the VIX. Note how this picture is totally different than the above picture of the market. On Friday, the VIX moved higher, and was above both a fan line and above our historical 19.83 resistance level ... so fear levels were increasing.

Bottom line: There is a large differential spread between what these two indexes are portraying, and that differential will return to normality soon.

That means that either the VIX has to shoot up higher (a market down condition) with the New Lows rising in tandem, or the New Lows have to remain very low with the VIX dropping. Expect one of these scenarios to happen very soon.

S&P 500 Index

*** Happy New Year and we will see you on Wednesday.

Regards,

 

Back to homepage

Leave a comment

Leave a comment