SDY: Contrarian Indicators Offer Near-Term Support for S&P 500
Sunday, June 20th, 2010Joe Eqcome submits:
Two contrarian indicators (VIX and S&P 500 share volume) when combined currently offer near-term support for the S&P 500 Index based on historical observations.
Historically, when the Inverse VIXVol Index (see “Caveats” below) moved to minus 10% or greater, as it is now, its subsequent monthly performance was positive (see first graph). The exception to this observation occurred during the fall of ’08 when Lehman filed for bankruptcy and investor panic reigned (see second graph).
