CBOE S&P 500 Volatility Index (VIX)

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CBOE Market Volatility Index (VIX - 41.25) repeated a pattern that we've been seeing lately, quickly moving to the 40 area from the prior week's close near 31. Last week's VIX advance was different from other recent moves, as it traded above 42.56, breaking a pattern of lower highs. The action in the VIX could be favorable to bears, as the broken string of lower highs could be signaling a move above the 50 area, or at the very least, another move up to 50. As we have said before, most VIX rallies dating back to 1997 have peaked in the 50 area, including the one in early August.