Markets up markets down. So goes the theme we've seen for so long. But, I did point out last week if the VIX Volatility Index started acting funny, it could be the beginning of something far more serious than anything we've seen in a very long time.
What I'm saying is a selloff big enough to scare some of the weaker hands out there, and a selloff that many investors who've been sitting on the sidelines for so long might finally start to consider as an opportunity to get back into stocks.
When we compare the recent S&P 500 chart to that of the VIX, one can see everything we've seen recently looks pretty normal. Big jumps on the VIX and big dips on the S&P 500, but every time this happens the S&P 500 ended up going higher. However, I think one more big jump on the VIX real soon could spell at least a mini disaster for stocks heading into Labor Day.
It would be after Labor Day we'd really know what's going to happen though, so I guess we probably shouldn't get too overly analytical about anything at this point. However, it's all worth noting. And, you can see by the charts above any sort of major change in the markets' behavior over the next few days could end up sending investors running for the hills.
The good news is my sources tell me if and when these markets finally do decide to bottom, the next move higher could be a very big move on to much higher highs than anything we've seen in quite some time.
So there you have it, a small snap shot of what could lie ahead for stocks, and speaking of snap shots, I hope you all bought some SNAP when we put it out there a few weeks ago. It's up about 20% since!
Take the profits though because who knows what's going to happen with SNAP over the next several months, and now that the stock has run into its 50-day moving average, it could pull back for a while again.