Vonage Investors


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Vonage Investors

Vonage Investors

Though last Monday kicked off a positive week with one of the most bullish days investors have seen in over a year, the enthusiasm faded by Thursday. It outright reversed on Friday, with the S&P 500 closing down 1.88%. The prior five trading days saw net gains of 2.23%, but clearly the market ended the week pointed in the wrong direction.

This dip, however, is unlike other dips observed during the persistent bullishness over the last fourteen months.

VIX Trending Higher

This time, with this pullback, the CBOE S&P 500 Volatility Index (or VIX) has not eased back from a temporary spike. Instead, the VIX - a contrarian indicator - has closed higher more often than not over the last three weeks. It's the first time since September of 2008 this has occurred, when the bear market was going from bad to worse. It's a trend that should worry investors, as the VIX tends to lead and forewarn of major market trends (inversely).