Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

Volatility ($VIX) May Be Providing Clues of a Big Market Drop

by admin February 4, 2025
February 4, 2025
Volatility ($VIX) May Be Providing Clues of a Big Market Drop

Secondary market signals are beginning to line up for a further drop, which can sometimes provide false signals. The primary indicator for me is always the combination of price/volume. When I only look at price/volume on the S&P 500, it still remains easy to be long – on all time frames:

S&P 500 – daily:

S&P 500 – weekly:

S&P 500 – monthly:

It’s REALLY hard to argue with uptrends and I’m not arguing with whether we’re in an uptrend. But I am beginning to see many secondary signals issuing warning signs that the risk of remaining long no longer makes sense. That’s about where I think we are now. I can’t guarantee lower prices ahead, but I CAN see warning signs. The VIX is one of those. As the S&P 500 rises, the VIX drops. That’s the historical relationship. To me, it’s a warning when the S&P 500 climbs and the VIX does too. That tells us that market nervousness is growing and the S&P 500 will unlikely handle bad news well. Here’s a chart that shows the building fear and nervousness, despite the recent all-time high price:

I don’t like to see fear escalating, like what’s in the bottom panel, when we’re trying to make another all-time high breakout. We should instead be seeing the VIX moving towards the recent low at 13. But here we are with a VIX at 18.22. I’ve previously posted on this blog that the absolute worst market days occur when the VIX is above 20. That’s where we can see severe impulsive selling kick in. We’re teetering here folks and everyone should be on high alert for a possible market meltdown.

YouTube FREE Live Streaming Event Today

If you want to check out MANY secondary warning signals that I’m seeing in the market right now and why you should be preparing to “batten down the hatches”, join me on our EarningsBeats.com YouTube channel for FREE. JOIN ME HERE and we’ll get things started at 5:30pm ET today. Should you be worried about a BIG selloff? Well, I’m nearly always bullish and I’ve moved to 100% cash, if that tells you anything. Watch these warning signs and then decide for yourself.

I hope you’re able to join, it might just save you a bundle!

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
Maria Smirnova: Gold, Silver Price Drivers Still in Place, My Focus in 2025
next post
Fox reveals plans to launch subscription streaming service this year

Related Posts

Expect A Very Strong Earnings Report From This...

July 6, 2023

Big Rally Ahead Should Yield All-Time High on...

June 7, 2025

This Week’s Sector & Industry Group to Watch

February 3, 2024

BIG SURPRISE (Not)! The Fed Does Exactly What...

July 26, 2023

Are The Markets Just Pulling Back, or Is...

June 24, 2023

The Halftime Show: Fitch Downgrade Sends TLT Closer...

August 3, 2023

Week Ahead: NIFTY Stares at Both Incremental Highs...

March 11, 2024

The CappThesis Market Strength Indicator: What It’s Telling...

July 12, 2025

Industrials Ignite as Bitcoin Blasts Off

July 11, 2023

Week Ahead: NIFTY Stares At Crucial Support; RRG...

February 10, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Kobo Resources Closes Second and Final Tranche of the Upsized Non-Brokered Private Placement for Gross Proceeds of Over $3.96 Million

    • Sranan Gold Announces Participation in Upcoming Capital Event Muskoka Conference and Munich Mining Conference

    • Insider Loan to Corporation

    • Blue Lagoon Announces Commissioning of MBBR Water Treatment System and Start of Underground Operations at Dome Mountain

    • Crypto Market Update: Bitcoin ETF Inflows Hit US$2.3 Billion As Traders Bet on Fed Easing

    Categories

    • Business (1,373)
    • Investing (2,900)
    • Politics (3,699)
    • Stocks (1,790)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved