The bears huffed and did a little puffing but they were unable to blow down the bulls door as the market ended its 3-day skid with a win.
There was a lot of talk yesterday on how the S&P 500 Volatility is broken and isn’t really a true guide for market direction anymore. The “professional” knuckleheads that were tossing around this notion were dead wrong as it has been one of the best technical indicators over the past few YEARS in helping us pick market direction.
We agree there are other “fear” indicators to measure market sentiment but it would be foolish to debunk the VIX as our chart work on the index has been money. (continued…)