Our VIX indicator is currently in neutral territory, but there is a troubling trend in the VIX overall. Since the end of April the VIX has been making higher lows and higher highs, in other words, VIX is trending UP. That is a dangerous trend that will have to be watched. I suspect the budget wrangling is causing traders to react pushing VIX upward. This could portend another correction; on a more positive note, it could also signal a big move up if the budget stalemate is resolved. VIX doesn’t really predict the direction of a move – it just predicts more volatility (larger moves) ahead; but normally, Higher VIX means lower S&P.
The Navigate the Stock Market analysis is HOLD today. The small Up-move sent up a cautionary flag that caused the system to drop from yesterday’s Buy.
I remain 50% invested. 50% is currenly my “fully invested position”
