Friday, February 6, 2009

VIX - Feb. 6 - There was significant divergence in the VIX in the latter part of the day relative to the bullish trend of the market.  The VIX (Volatility Index) is usually a contrarian index and ordinarily runs counter to the market.  With the market going up the VIX should be coming down.  In the afternoon the VIX went up at the same time as the market was going up.  This divergence does raise some questions as to the momentum follow through on Monday.



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