S&P 500 - Is the Market Getting Too Comfortable?

Is the Market Getting Too Comfortable?


Section 1: Signs of Complacency

Our Volatility Valuation Index (VVI) has dipped to the lower end of its range—an area that

often signals complacency.

Historically, this level tends to align with market tops, so it’s worth paying close attention.

Could this be a warning sign for the S&P 500?

Section 2: About the VVI

The VVI measures extremes in volatility, helping to identify potential market turning points.

It’s trend-agnostic, meaning high volatility can signal both tops and bottoms.

For equities, high readings typically align with bottoms, while low readings often flag tops.

That said, it works best when paired with other indicators like trend and momentum.

Section 3: What’s Next?

Tomorrow, we’ll dive into momentum signals on the S&P 500 to see what’s really happening under the hood. Stay tuned!