VIX Signal Delivers Again for SPX
$S&P 500(.SPX)$ $Cboe Volatility Index(VIX)$
Is the SPX bounce a technical surprise? Not exactly. The price recovered the 20DMA by the close.
$6,795 could set resistance, suggesting a potential consolidation at the open, likely toward $6,728.9 and maybe $6,689.3.
Given that the price is bouncing from extreme oversold conditions, a complete gap fill soon is not guaranteed, since the 200DMA can flip to support, as on May 12 2025.
one year ago today, the VIX closed above 50, a signal with a 100% win rate over the following year and an average S&P 500 return of 35%.
The S&P 500 has gained 38% since then, adding to the list of times when it paid to be greedy when others were fearful.
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