There are 462 above the 14 SMA, from the list of 714 equities I track from around the world. The question is: how much time can the bears stay out of this market?
The other side of the coin is that VIX is affecting risk appreciation and traditional option valuation.
With the SPY trading at 253, the market is pricing a SPY Put with 16 natural days to expiration at around 0.22. Traditional models are giving a value of 0.11. This is a 100% difference, too much to risk on those assets. Of course, I like to think that the market is always right.
The chart below shows the GDP VOL since the 50’s. I have marked two tranches: 1st to 1984 and the second until today. During the last financial crisis the “GDP VIX” (rolling 2 years) reached near the average of the first tranche.
Below that we can see the GPD annual growth of UK, France and US, the correlations of those is a phenomenal study to review.
The SPX printed a new all high today just like the RUT which have been extremely bullish since late Aug. NDX is lagging a bit but near its all time high.
VIX is trading at 9.7 or 1 point above the all time low from last July.