Warning Sign From The VIX, Signals Markets May Not Hold Gains

The VIX is slightly higher today even with the big stock market bounce. This is a warning sign that the markets may not hold their gains or we could see some selling in the next few days. Basically, it tells us big money/smart money is buying protection here. This morning the BOE (Bank of England) surprised by not raising interest rates, JPMorgan Chase beat earnings and inflation data showed more inflation than expected. Regardless of the initial bullish move in the markets, be on alert based on the VIX being higher. A high VIX is often a warning signal.

By Pro Trader

Gareth Soloway