The Volatility Index ($VIX) is one of my key sentiment indicators and it has a history of accurately predicting corrections and bear markets. We’ve had neither without the VIX first clearing an important hurdle in the 17-20 range. Bear markets require a huge dose of fear and panic and the VIX acts as our stock market meteorologist – one that predicts major market storms as they’re approaching. Throughout this entire secular bull market, the S&P 500’s poor periods of performance have been marked by VIX readings above 20. Rather than repeat these results in this article, you can check out a Trading Places article that I wrote in November 2023, “What Are The Chances Of A Market Crash? This Indicator Says ZERO!” On recent Trading Places Live YouTube shows and in my regular emails to our EB.com members, I’ve consistently discussed the significant increase in risk that accompanies a VIX…
