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?Yesterday, the VIX and the VIX curve normalized accross the board.
However, I would not get too excited about a rally. ?Yes, the SPX is back near all-time highs, but the NDX and RVX continue to be weak. ?Weakness in the NDX and RVX continues to pull down the big cap weighted indexes. ?It is for this reason that I think the SPX is near topping out and will probably test the 100 DMA again. ?What makes me think that the NDX and RVX will stay weak? ?Take a look at the VXN-VIX spread. ?In this rally the spread has not fallen…ITS WIDENED.
If the spread is going to keep being wide, then I am a believer that there will continue to be weakness in the overall market. ?GOOG seems to be proving that point right now.