
I highlighted last week some reasons why I thought stocks, and particularly QQQ, had finally formed a significant top in my latest commentary for POWR Options. One of the biggest reasons why the NASDAQ looks tired and toppy was complacency-which was reflected in the form of option prices.
Most of you are probably very familiar with the VIX-sometimes called the “Fear Index”. The VIX is a general measure of 30-day option prices on the S&P 500. It tends to spike when stock prices fall sharply and usually falls when stock prices rise.