Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Volatility ($VIX) May Be Providing Clues of a Big Market Drop

by February 3, 2025
February 3, 2025
Volatility ($VIX) May Be Providing Clues of a Big Market Drop

Secondary market signals are beginning to line up for a further drop, which can sometimes provide false signals. The primary indicator for me is always the combination of price/volume. When I only look at price/volume on the S&P 500, it still remains easy to be long – on all time frames:

S&P 500 – daily:

S&P 500 – weekly:

S&P 500 – monthly:

It’s REALLY hard to argue with uptrends and I’m not arguing with whether we’re in an uptrend. But I am beginning to see many secondary signals issuing warning signs that the risk of remaining long no longer makes sense. That’s about where I think we are now. I can’t guarantee lower prices ahead, but I CAN see warning signs. The VIX is one of those. As the S&P 500 rises, the VIX drops. That’s the historical relationship. To me, it’s a warning when the S&P 500 climbs and the VIX does too. That tells us that market nervousness is growing and the S&P 500 will unlikely handle bad news well. Here’s a chart that shows the building fear and nervousness, despite the recent all-time high price:

I don’t like to see fear escalating, like what’s in the bottom panel, when we’re trying to make another all-time high breakout. We should instead be seeing the VIX moving towards the recent low at 13. But here we are with a VIX at 18.22. I’ve previously posted on this blog that the absolute worst market days occur when the VIX is above 20. That’s where we can see severe impulsive selling kick in. We’re teetering here folks and everyone should be on high alert for a possible market meltdown.

YouTube FREE Live Streaming Event Today

If you want to check out MANY secondary warning signals that I’m seeing in the market right now and why you should be preparing to “batten down the hatches”, join me on our EarningsBeats.com YouTube channel for FREE. JOIN ME HERE and we’ll get things started at 5:30pm ET today. Should you be worried about a BIG selloff? Well, I’m nearly always bullish and I’ve moved to 100% cash, if that tells you anything. Watch these warning signs and then decide for yourself.

I hope you’re able to join, it might just save you a bundle!

Happy trading!

Tom

0
FacebookTwitterGoogle +Pinterest
previous post
BULLISH on These Options Trade Ideas
next post
Federal agencies scrub climate change from websites amid Trump rebranding

You may also like

Market Trend Model Flashes Short-Term Bearish, What’s Next?

November 4, 2024

Three Behavioral Biases Impacting Your Portfolio Right Now

February 4, 2025

Downside for Bitcoin as Cryptos Crumble

March 11, 2023

Investors Await CPI and Bank Earnings: Will They...

January 15, 2025

Could AMZN’s Stock Hit $3 Trillion Valuation? What...

July 2, 2024

A Half Point Fed Rate Cut? The Stock...

September 13, 2024

The Stock Market This Week: What This Surging...

March 22, 2024

Shopify Stock Is Getting Some Love

November 11, 2022

DP Trading Room: This Powerful Scan Finds Stocks...

November 6, 2023

When Should We Start To Get Bullish?

December 30, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Bank Capital Standards

      July 3, 2025
    • White House wants Obama intel officials ‘held accountable’ for role peddling 2016 Russia hoax

      July 3, 2025
    • EPA places numerous employees on leave for alleged misuse of official titles in unauthorized letter

      July 3, 2025
    • 2 lone Republicans vote against Trump’s ‘big, beautiful bill’ as it heads to president’s desk

      July 3, 2025
    • Freedom of Speech Is Worth Celebrating, as Europe Ramps Up Prosecution of “Hate Speech”

      July 3, 2025
    • Psychedelic Legalization

      July 3, 2025

    Categories

    • Business (8,379)
    • Investing (2,102)
    • Politics (15,938)
    • Stocks (3,188)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved