At the Edge of Chaos: Is the End of the Rotation at Hand? Plus: Two Tech Stock Breakouts
We may be nearing the end of the recent rotation in stocks, and here is why.
The New York Stock Exchange Advance Decline line (NYAD) has made a new high, just as the implied volatility (IV) of the S&P 500 (SPX) complex index, SPY ETF, and related futures and options has crashed. Moreover, the decline in IV volatility is occurring at the same time we see a narrowing of the Bollinger Bands which, on its own, suggests that a big move in stocks is approaching. Of course, the direction is always difficult…
