One of the signals which convinced us to call a top a few weeks ago [see: Correction Warning] was the bullish (bearish for stocks) 10/20 cross in VIX. Should bears be concerned that the cross just unwound?
And, in an attempt to answer the many questions raised by my observation that SPX’s bounce at a 10.0056% decline from its recent highs – 19 cents away from exactly 10% – I offer the following charts. Note that VIX collapsed seconds after SPX reached the 10% correction mark. Coincidence? I think not.
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