At 27.22, the CBOE Volatility Index (VIX) is currently at its highest level since the beginning of the month. Perhaps more importantly, the VIX is at its second highest level relative to its 10 day simple moving average (+20.0%) since the November 20, 2008 all-time high close of 80.86.
Short-term, this is a bullish oversold signal for stocks, but now investors have to be wary that the SPX has also broken its 50 day moving average level of 1050.
Some of my earlier analysis suggested a good target bottom for the SPX is in the 1037-1041 range. With a little more than 20 minutes to go in today’s session, we are just a couple of points away from the top of that range.
Disclosure: Short VIX at time of writing.