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15:54:03 Today MARKET TALK: Fear Factor Mellows Out

Edited by Paul Vigna
Of DOW JONES NEWSWIRES

(call: 201.938.5172; email: [e-mail])

MARKET TALK can be found using N/DJMT


3:54 (Dow Jones) VIX has fallen to almost a two-month low, which Barron's Bob
O'Brien notes isn't surprising given the fact that the market's recent path has
been mainly in one direction. "Traders haven't let losses swell too
dramatically before they step as buyers," he says. VIX has historically
decreased in a bull market as falling prices tend to make investors edgier than
rising ones. "Whether the VIX's performance suggests there's legs to the bull
market is a question of an individual trader's perspective: that is, should the
VIX be interpreted as a lagging indicator, so it's telling us what we've been
doing, or as a leading indicator, telling us where the market is headed?" (SMR)
(http://blogs.barrons.com/stockstowatchtoday/2009/04/03/fear-factor-mellows-as-v
ix-eyes-break-below-40/)