The 06/24//21 blog noted “If the SPX makes a marginal new high unconfirmed by the IXIC and the Dow Jones Industrial Average with a higher VIX bottom, it could be the end of the persistent rally.”
The daily VIX/SPX chart courtesy of Trading View illustrates what happened on 06/25/21.
The S&P 500 (SPX) made a marginal new high with a higher VIX bottom. Additionally, the Nasdaq Composite (IXIC) and the Dow Jones Industrial Average failed to make new all-time highs.
There’s a good chance 06/28/21 could be the start of at least a short-term decline. Note what happened after the prior two VIX/SPX bear signals on 05/07/21 and 06/15/21.
Internal momentum for the US stock market has reached the level of “ludicrously bearish”. The next blog will examine several internal momentum indicators.