Nothing To See Here - VIX Hits 18-Month Low

Volatility on the S&P is nowhere to be seen these days - perhaps the market crash was merely a figment of our imaginations!

The VIX is low, and it continues to head lower.

(Source: Yahoo Finance)

As you can see from our experience in 2008, when the VIX breaks out, it breaks out in a big way. So a breakout on the VIX would be a good cue for us to start slamming the PANIC button as hard as humanly possible.

But for now, all is calm in the markets, as February's drop now looks like a pebble tossed in the pond in hindsight.

The VIX could continue to head lower - who knows - but one would have to expect a spike in our future again sooner rather than later.

No Follow Through Today (Yet) From the S&P

With the DOW pushing to new 2009 highs yesterday, I was looking forward to today to see if the S&P could confirm the DOW's push - which would indicate that this rally is still on.

Yesterday's push was quite impressive across the board, but thus far today, we have not yet witnessed any decisive follow through. After 6 consecutive positive days, you'd expect the markets would need a breather at some point.

However, if the S&P turns down again before failing to break it's October highs, that would be a bearish looking "double top".

The S&P is bumping up against strong resistance (again) around 1100.

(Source: Barchart.com)