When SPY & VIX Diverge…

Since January 2012 over 80% of the trading days have seen closing SPY moves of under 1% and yesterday was no exception. Bull markets climb and do so on low volatility as we’ve seen  the S&P climb over 40% in 22 months. All the guessing that is going on about the bull market top really is just guessing.

Yesterday saw a rise in volatility as measured by the VIX. This could have simply been insurance being bought ahead of Apples earning but anytime SPY and VIX diverge, it’s a small short-term caution sign.

 

Today’s Potential Opportunities on Further Pullbacks:

Stocks

LYB

ETFs

TAN

For today’s official Daily Battle Plan set-ups click here.

 

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ISE’s VolDex

The ISE believes they have created a cleaner version of the VIX with a new index they call VolDex. You can learn more about VolDex on the ISE website.