{"id":68409,"date":"2024-04-14T12:02:33","date_gmt":"2024-04-14T19:02:33","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=68409"},"modified":"2024-04-15T08:48:15","modified_gmt":"2024-04-15T15:48:15","slug":"vix-follow-through-confirms-bearish-signal-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2024\/04\/14\/vix-follow-through-confirms-bearish-signal-the-market-breadth\/","title":{"rendered":"A VIX Follow-Through Confirms Bearish Signal – The Market Breadth"},"content":{"rendered":"\n

Stock Market Commentary<\/strong><\/h2>\n\n\n\n

Last week was a week like few other for the volatility index, the VIX. In my last Market Breadth I made the case for the VIX mattering again<\/a>. A VIX follow-through demonstrated even more strength and resilience. The resulting closing high for the year is a firmer bearish signal for the stock market…at least until market breadth finally falls into oversold conditions. While market breadth plunged along with the spike in the VIX, the major indices are doing their best to maintain their own veneer of resilience as money rotates right back into big cap tech stocks.<\/p>\n\n\n\n

The escalating conflict in the Middle East<\/a> further expanded World War 3 and could raise the stakes for financial markets. I only say “could” because, to-date, the market has largely ignored geo-political tensions. Accordingly, I am not directly factoring in such things into my assessment of the stock market. However, while predictions are futile given the market’s ability to whistle right by all the fighting and destruction, I continue to stick by my theme for this rally: be ready, so you don’t have to get ready. On a related sidenote, I have taken note of the multitude of times on the news where the experts and pundits expressed surprise at the scale of the latest escalation. In other words, do not expect anyone (credible) to provide ample warning of the next calamity.<\/p>\n\n\n\n