After carving out a series of higher lows in March amid rising S&P 500 prices, the Volatility Index (VIX) -- also known as the fear index -- is higher today while the SPX attempts to sell-off. The SPX, along with its ETF, the SPY, has made higher highs within the Feb-Mar upleg, but it still hasn’t popped above its January high. This provides evidence that the markets have entered a period of less complacency and more fear (i.e., expectation of volatility). That said, however, the VIX must hurdle key resistance at 19.35 to trigger buy signals in my work. Otherwise, current action remains a “bottom-building” expedition.
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