When the VIX Is Low, It's Time to Go

By Bob Lang

Since the mini bear/correction finished up at the end of 2018, the volatility index (VIX) has been smashed. Just take a look at the chart, below, and you'll see that trend has been straight down. This stunning move by the markets of rallying some 22% off the lows is remarkable. Yet this move by the VIX has been even more impressive.

The drop from the mid-30's on December 24th to the low teens in less than three months time is historic. The VIX is back to the low levels we saw last summer/fall before a nasty decline ensued. It was during that period when a lengthy amount of complacency built up, and when a correction happened it caught many off guard.

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