Investing to Wealth

The VIX was at 51.65 when the SPX formed its “devil’s bottom” at 666.79 almost 2 months ago. Since then the SPX has gone up almost exactly one-third and the VIX has dropped almost exactly one-third. As the SPX continues to rise -- recently breaking through an important resistance level at 875 -- the VIX seems somewhat reluctant to continue lower.This is consistent with my statement of 2 weeks ago that “my personal forecast is for the recent decline in volatility to drop to no lower than the 30-32 level before flattening out.” A floor in volatility doesn't necessarily mean that the VIX ...