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The VIX index has been declining of late, reflecting higher confidence levels from stock market investors. Since 2010, once the VIX (Fear Index) has reached the 14 to 16 level, the market has been close to a short-term high in prices at (1).
Currently the VIX hasn’t reached the 2010/2011 lows, yet it is edging closer to these levels. An popular investment belief is….Bottoms are events and Tops are a process. The VIX isn’t suggesting a top is in place at this time, it does reflect growing confidence in the markets and in the past, these levels do reflect we are nearing a time to be cautious on the markets.