Chart of the Day - Wednesday, December 18, 2024

🏆 Today's Chart of the Day was shared by Caleb Franzen (@CalebFranzen)
 

• Today was the second-biggest day in the history of the Volatility Index ($VIX). It spiked nearly +74% to a four-month high of 27.6.
   
• The $VIX had a similar tantrum on August 5th when it spiked nearly +65%. Caleb points out that the S&P 500 marched steadily higher from that point on. Both spikes occurred when the S&P 500 was within -10% of a record high. 
   
• Despite the similarities, the August 5th spike closed significantly off its intraday high (-41%), while today's spike closed -2.5% off its highs. In other words, the $VIX hasn't signaled a reversal yet. 
   

The Takeaway: The Volatility Index ($VIX) had its second-biggest day in history today, jumping nearly +74%. Today's spike was similar to the one in early August, although it lacks evidence of a reversal.