{"id":76601,"date":"2025-10-04T20:00:56","date_gmt":"2025-10-05T03:00:56","guid":{"rendered":"https:\/\/drduru.com\/onetwentytwo\/?p=76601"},"modified":"2025-10-04T20:00:57","modified_gmt":"2025-10-05T03:00:57","slug":"market-melt-up-alongside-government-melt-down-the-market-breadth","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2025\/10\/04\/market-melt-up-alongside-government-melt-down-the-market-breadth\/","title":{"rendered":"A Market Melt-Up Alongside A Government Melt-Down – The Market Breadth"},"content":{"rendered":"\n

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

We now have a stock market melt-up alongside a government melt-down…and financial markets could not care less. In fact, the stock market can hardly get more bullish with the long-term, mid-term, and short-term uptrends each flashing green<\/a> and pointing upward. Still, I cannot help checking my peripheral vision for signs of caution. This week’s key reason for caution comes courtesy of the volatility index (VIX). The VIX has a bottoming pattern as it hugs ever more closely to its level from right before the tariff drama, trauma, and noise. In other words, volatility looks ready for another surge. Given October is the last of the stock market’s most dangerous months of the year<\/a>, one more VIX pop seems both appropriate and timely. Yet, a convincing catalyst remains elusive. Perhaps some signal actually emerges that suggests this latest government shutdown could get worse than the last one.<\/p>\n\n\n

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\"The<\/a>
The volatility index (VIX) looks “impatient.” The VIX is pressing against its pre-tariff drama, trauma and noise and looks ready for an October surge.<\/em><\/strong><\/figcaption><\/figure>\n<\/div>\n\n\n

The volatility index looks like a developing cup. Volatility has churned around and near the long-standing pivot level as seen in the purple line above. Th VIX increasingly pressing against that pivot suggests pressure building into a short-lived burst. If a shutdown headline or an October surprise forces a selloff and a volatility pop, I expect the counter-forces to arrive quickly, just as they have throughout recent dislocations. Seasonally, October\u2019s drawdowns are typically buying opportunities that kick-off seasonal stock market strength until at least April.<\/p>\n\n\n\n