The turn in the fear index: will history repeat itself?
The $VIX index, known as the 'fear index', crossed below its 20-day moving average.
This is a significant trend change, coming after the index remained above this level for 30 consecutive days of increased volatility.
Looking at past data shows that similar reversals in the $VIX occurred at critical junctures, often immediately after significant corrections or challenging bear markets.
History presents a fascinating statistical fact that is hard to ignore:
Every time this technical scenario occurred, the S&P 500 index showed price increases over the next year.
In 100% of cases, with the average return of the $SPX index standing at +20.4% in the 12 months following the signal.
Will history repeat itself?
We are monitoring.