Will We See Yet Another VIX Divergence?

By Andrew Nyquist
On February 3rd,  the VIX (Volatility Index) swooned to 16.10 while the S&P 500 hit new near term highs around 1345. Things began to “feel” easy, and maybe a little too easy. Volatility expanded and the market traded up and down in a relatively tight range (1335-1355) over the next 8 trading days. Despite the back and forth, this was ultimately seen as bullish by many investors and analysts, as the S&P 500 was able to hold its uptrend line before pushing to new near term highs on Thursday and Friday. Definitely hard to argue with the bulls logic here. But, is it really just that easy… simply up, up and away from here?

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