Volatility is likely to rise from here. The S&P has gone 37 days without a 1% decline – last seen at the NOV 2021 Top. Many similar streaks ended with some big Volatility spikes. Watch closely for the first 1% down day – it could mark another important turn in Stocks.
@MacroCharts Maybe we pull back from here. But zero important tops have come from $VIX <14.
@MacroCharts Maybe we pull back from here. But zero important tops have come from $VIX <14.
@MacroCharts Is there a strong reason to believe this 37 can't go up further? Given the resilience market is showing (also given earnings season), I thing it can continue this streak a little further.
@MacroCharts Probably good news for below-book high-dividend yielding stocks in Japan, as yen strengthens and people seek the 5% return with limited downside. (undervalued stocks in an artificially repressed currency).
@MacroCharts Do you think it will be just a pullback (and so a good opportunity to add or enter) or a bigger correction is coming? That's a big difference.
@MacroCharts You should make a model on "where are stop loss orders". That is the driver of the market (MSFT and NFLX hunted stop losses yesterday). European stocks are not going higher anymore because the orders are gone.