Something wasn’t right yesterday …
Inflowing Liquidity levels increased yesterday, so the market went up. But, something wasn’t quite right at the same time.
What was it?
The level of the Volatility Index. Since it moves in the opposite direction of the market, it should have gone down yesterday when the market went up.
Below are two snapshots showing that action yesterday. The first snapshot was taken at 11:58 AM, and the second one at 4 PM yesterday.
What did they show?
They showed the S&P up 0.85% at 11:58 AM with the VIX also up +0.19% … the VIX should have been down.
And at 4 PM, the data showed the S&P up +0.36% with the VIX up +6.17% … again, the VIX should have been down.
Since the VIX is an option related view of market expectations two to four weeks out, it had a negative outlook on a day where the market showed a positive outlook … something’s not quite right with that picture.
This snapshot was taken at 11:58 AM yesterday …
This snapshot was taken at 4 PM yesterday …
