Eyes Peeled for a VIX Bounce

Seeing as the S&P 500 is hitting new highs, I decided to check in on just how the CBOE Volatility Index (VIX) is behaving. The VIX tends to be a great tool when fear is running wild -- and it also tends to generate long-term overbought signals when it spikes higher.

VIX -- Daily Source: StockCharts.com View Chart » View in New Window »

For instance, the VIX rallied 70% between Sept. 20 and Oct. 9, from 12.52 to 21.34. It triggered a long-term overbought signal at that high, even as it saw no long-term oversold signal to accompany that 12.52 low.     ...160 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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