Volatility is not rising, so stocks will

The attached study was first published in June 2023.

It highlighted the moment when the VIX registered a certain RSI level in late November 2022.

12 months on, the S&P 500 has climbed 15% up the wall of worry that I allude to in the graphic below.

Recently, the VIX weekly RSI did not trade above 64 and it’s approaching 38 again.

The actual VIX Index is now at its lowest point since mid-January 2020.

The is little volatility present.

Others may suggest complacency and imply the buying of insurance is cheaper…..my work suggests that there is life in this S&P 500 advance,

but in the short-term, it’ll be in timing when to add or allocate.

November 29, 2023

by Rob Zdravevski

rob@karriasset.com.au