While the SPX closed up fairly strongly on Tuesday, the VIX also rose. Most often they trade opposite each other, so this kind of action is somewhat unusual. But VIX has a tendency to decline going into the weekend (Friday afternoons), and then rise when it returns from the weekend. So to see this action on the first trading day of the week is less unusual than at any other time. Still, combined with the SPX 50-day high, it has been often followed by a dip in the next few days. This can be seen in the study below.
Results here appear squarely bearish for the 1-2 day time period. Traders may want to keep this in mind when setting their market bias.
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