Update

Good question regarding the VIX from someone today. Just what does the VIX have to do with the S&P anyway? Technically, it doesn’t. The VIX is a broad measure of volatility tracked by the CBOE based on put/call ratios. When the VIX is elevated, there’s more fear in the market, e.g. people are buying puts to protect their positions. As we can clearly see, the VIX is down at support as well as the bottom of the Bollinger Band. As we said, the VIX is not a sell now or buy now trigger for stocks, but it is a warning to those who are long in the sense that there may not be a whole lot more upside in this market in the near term. The VIX can move violently in the opposite direction, so it bears watching. For those of you in the conservative program, we did attempt a 1410/1400 spread on Friday, but could not get filled.