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Assessment: Here’s a fun fact…
The last time the VIX (CBOE Volatility Index) closed at or below the level it did yesterday (13.93 yesterday) was back on February 14th, 2020 (it achieved a low of 13.38…closed at 13.68)…three days later the COVID slide began. When the COVID slide ended in mid-March, the VIX reached a high of 85.47! Obviously, I am not predicting a global catastrophe which spikes the VIX that high, it’s more just a caution sign to me.
The saying for the VIX goes as follows: “When the VIX is low, it’s time to go [sell]. When the VIX is high, it’s time to buy.”
So, if you are reading this as a signal, it is a potential overbought indicator…leading to a bearish turn for the broader markets at these levels. Timing is of course the key.
Good luck in your trades!