By Lawrence G. McMillan
Last week, something unusual happened — both the S&P 500 ($SPX) and the CBOE Volatility Index ($VIX) rose every single trading day. It’s a rare alignment, and one that tends to grab the attention of volatility watchers. Historically, $SPX and $VIX move in opposite directions about 75% of the time, so a full week of synchronized gains stands out.
We first explored this phenomenon back in 2009, when similar behavior prompted questions about what rising volatility in a rising market might really mean. That analysis — availble through the link below — offers useful perspective today. We’ll revisit this topic with updated data and analysis in an upcoming issue.
Read: $VIX and $SPX Are Both Rising! What’s Going On? — Originally Published in 2009.
© 2023 The Option Strategist | McMillan Analysis Corporation