Rolling with the VIX

To support a case for a tactical bounce in the equity markets,

I have used red to highlight the data when the AAII investor sentiment survey has had the narrowest spread between bullish and bearish respondents,

And I have circled those corresponding moment in the accompanying S&P 500 chart.

So that all looks lovely when many of the bulls disappear.

Although, ‘bounces’, by nature are short-term.

For the strategic equity allocators, this note supported the ‘grind’ higher for the S&P 500

The oversold VIX and how the SPX grinds higher

But that was back then and we are now deeper into this grind.

My final line in that note said, “It’s not the safest of markets”.

August 12, 2024

by Rob Zdravevski

rob@karriasset.com.au