VIX Volatility Model - Update 5-24-16

Published : May 24 2016 at 12:27 ET

VVM remains on its SELL signal that it issued yesterday on the basis of short-term upside. This upside may turn into longer term upside as its sell signals can last for weeks as was the case with its SELL signal issued on March 15, 2016. But since VVM is highly reactive, it remains fluid.

The NASDAQ Composite and S&P 500 both moving above their respective 50-day moving averages on increasing volume suggests institutional support, at least for now. Further, the ECB's stance on QE given the economic malaise in Europe adds QE-fuel to the conflagration. 

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