Volatility Index Still Hasn't Confirmed U.S. Stock Rally: Chart

(Bloomberg) -- Equity bulls cheered as the S&P 500 Index closed at its highest since October, but there may still be a small fly in the ointment -- volatility. The Cboe Volatility Index has yet to confirm the equity rally as it hasn’t formed a lower low to match the U.S. stock benchmark’s higher high, according to Tom McClellan, editor of the McClellan Market Report . While it shouldn’t be too difficult for the VIX to move lower, this type of divergence doesn’t come along very often and can be “problematic,” he wrote.

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