The Vixen VIX

$VIX is entering a zone that has been historically good for the market. It is flirting with a reading of 15. So should you take this as a signal that the market is topping out and that it is ready to topple over and that you need to get out of the market?

The history of VIX says – not so fast. History says that the VIX has a tendency to stay above 15 for a long period of time only to drop below it and then stay there for a long stretch too. At least, when the VIX is below 15, S&P 500 has somewhat smoother gains, whereas with a VIX reading above 15, the advances and declines are shaper.

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