🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

You Can't Keep A Good Rally Down, But Watch VXN For Warnings

Published 03/02/2017, 12:13 AM
Updated 07/09/2023, 06:31 AM
NDX
-
US500
-
US2000
-
VXN
-

Bears get a sniff of something, then Bulls come along and blow the nascent opportunity out of the water. It was a big day yesterday for indices - the Russell 2000 in particular, as buyers jumped in early and played hard for the day.

The S&P tagged the upper 10% band and is close to the 15% of historic high prices dating back to 1950. The last time the S&P was up at these levels it was May 2013 - which ultimately proved to be the middle of a rally which lasted another two years.

SPX Daily


The Russell 2000 managed a new closing high, reversing the MACD trigger 'sell' into a new 'buy' signal. There still hasn't been a return to the relative outperformance, but yesterday was a step in the right direction.

RUT Daily


If there is a warning sign for bulls it's the CBOE NASDAQ 100 Volatility. In May 2013, historic volatility was very low and the Nasdaq 100 (and other indices) were able to keep on chugging higher, but 2015 saw a surge in volatility which ultimately didn't follow through with a significant loss for markets; will this come back to bite bulls in the butt?

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.