The stock market could be in for a ‘VIXplosion,’ says widely followed strategist Sven Henrich

by SpontaneousDisorder

He also mentions poor market breadth which we seeing in the “Hindenburg Omens” which were present at the tops last year.

Sentiment is also very extreme, for example the 21 day moving av. of the daily sentiment index is 82 in the S&P, which is close to the extremes we’ve seen over the last couple of years.

Sept/Oct is bad seasonally so maybe gets more interesting then.

 

 

We could be headed for a VIXplosion.

The CBOE Volatility Index, known commonly as the VIX or the stock market’s fear gauge, has been sitting at relatively low levels as stocks reach all-time highs.

And while muted market fears might seem advantageous for now, the VIX could effectively be a ticking time bomb, says Sven Henrich, founder and lead market strategist at NorthmanTrader.

“The VIX follows some very specific patterns that show compression,” Henrich said Friday on CNBC’s “Trading Nation.” “If you look back to, let’s say, the last few years, we’ve seen a large compression pattern from 2016 to 2017.”

www.cnbc.com/2019/07/26/a-vixplosion-may-soon-hit-the-stock-market-strategist-sven-henrich.html