SPDR S&P 500 (SPY)

[2bit-nothing]

SDP,

VIX and SPX disconnect is not something new. Bear in mind VIX is from option traders and they only constitute a portion of the market. That is why under certain conditions they predict nothing. People like Cobra tried to use frequency statistics to gauge the next day. For example, if they both rise or both fall, such and such a % of time the next day is an up/down day. Guess what, they are missing a huge chunk of cycle analysis and all they got is a probability from the frequency school that is no better than 50/50 chance. My experience is that if both VIX and SPX rise, watch out bears, price action always win in a bull market. I think you can say the reverse is true for a bear market.

2bit