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$VIX Bottom Here?

March 2, 2013

Is the market at a top?

While identifying tops is more difficult than finding bottoms, to answer the question we look at the $VIX and apply the Coppock Indicator on a monthly chart. Given the negative correlation between S&P-500 (“Market”) and $VIX, a low of the monthly $VIX points to a market top.

As of February 28, 2013:  The monthly $VIX printed a higher negative value compared with its previous value in January. And this is a technical indication of a low for the $VIX.

(Note: Several times in the past, the monthly $VIX went lower again, invalidating/delaying  the current picture. It’s part of the imperfect game.)

$VIX Bottom Here?

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