March 22, 2016
Trades & Tutorials
By Geoff Bysshe
The S&P 500 has closed higher for the last 5 consecutive weeks and it’s up this week too. Is it time for a correction?
According to this indicator that looks at the relationship between two measures of volatility the market sentiment is excessively bullish. In fact this measure has not reached its current levels since December of 2014, right before a significant correction.
This indicator is not intended to pick the exact top of a move, but it does suggest that when the market begins to pull back, it may be more significant than the shallow corrections we’ve seen in the last 5 weeks.
