{"id":14565,"date":"2025-02-04T00:01:53","date_gmt":"2025-02-04T00:01:53","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/04\/volatility-vix-may-be-providing-clues-of-a-big-market-drop\/"},"modified":"2025-02-04T00:01:53","modified_gmt":"2025-02-04T00:01:53","slug":"volatility-vix-may-be-providing-clues-of-a-big-market-drop","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2025\/02\/04\/volatility-vix-may-be-providing-clues-of-a-big-market-drop\/","title":{"rendered":"Volatility ($VIX) May Be Providing Clues of a Big Market Drop"},"content":{"rendered":"
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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 \u2013 on all time frames:<\/p>\n

S&P 500 \u2013 daily:<\/strong><\/p>\n

S&P 500 \u2013 weekly:<\/strong><\/p>\n<\/p>\n

S&P 500 \u2013 monthly:<\/strong><\/p>\n<\/p>\n

It\u2019s REALLY hard to argue with uptrends and I\u2019m not arguing with whether we\u2019re in an uptrend. But I am beginning to see many secondary signals issuing warning signs that the risk of remaining long<\/em><\/strong> no longer makes sense. That\u2019s about where I think we are now. I can\u2019t 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\u2019s the historical relationship. To me, it\u2019s 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\u2019s a chart that shows the building fear and nervousness, despite the recent all-time high price:<\/p>\n<\/p>\n

I don\u2019t like to see fear escalating, like what\u2019s in the bottom panel, when we\u2019re 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\u2019ve previously posted on this blog that the absolute worst market days occur when the VIX is above 20. That\u2019s where we can see severe impulsive selling kick in. We\u2019re teetering here folks and everyone should be on high alert for a possible market meltdown.<\/p>\n

YouTube FREE Live Streaming Event Today<\/h2>\n

If you want to check out MANY secondary warning signals that I\u2019m seeing in the market right now and why you should be preparing to \u201cbatten down the hatches\u201d, join me on our EarningsBeats.com YouTube channel for FREE<\/strong>. JOIN ME HERE<\/a> and we\u2019ll get things started at 5:30pm ET today. Should you be worried about a BIG selloff? Well, I\u2019m nearly always bullish and I\u2019ve moved to 100% cash, if that tells you anything. Watch these warning signs and then decide for yourself.<\/p>\n

I hope you\u2019re able to join, it might just save you a bundle!<\/p>\n

Happy trading!<\/p>\n

Tom<\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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 \u2013 on all time frames: S&P 500 \u2013 daily: […]<\/p>\n","protected":false},"author":0,"featured_media":14566,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-14565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=14565"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/14566"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=14565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=14565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=14565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}