The Volatility Index (VIX) remained rangebound between 15-17.50 throughout all of last week and over the past six sessions. Another close below 15 would likely confirm higher market highs with another retest to 13.50 possible. If we go out on a limb, we think the VIX could trade down to 12.75-11.50 in January and during the first-quarter earnings season.
As a reminder, we said not to get “cautious” on the market until 20 is cleared and held. We would turn bearish on the market on a move above 24.
