A volatile week is coming to a close with the S&P 500 (.SPX) down 4 or 5 points since last Friday (1,293.77). Meanwhile, the CBOE Volatility Index is set to close the session above 32.00 and its best close in almost five years. The increase in implied volatility seems largely related to the ongoing worries about the financials and the corresponding increase in actual volatility. In addition, the fear gauge also reflects a fundamental shift in investor sentiment over the past few months. According to Investors Intelligence, only 31.1 percent of newsletter writers surveyed are now bullish, down from 41.9 percent the week before. Bearishness rose from 36.6 percent to 43.3 percent. By way of comparison, the last time bearishness reached a similar extreme recently, in mid-August 2007, the survey was 37.4 percent bullish and 40.6 percent bearish.
Category: All Indexes
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.