Location & Language

Zenfinex Global Limited regulated by the Financial Services Authority (FSA) of Seychelles (SD092)

VIX Fear Index Hits Lowest Level Since 2020 Amid Positive Economic Indicators

By Samir Al Khoury

The VIX Fear and Volatility Index, which expresses investors’ expectations regarding the price movement in the stock market within a month, decreased by 12.45 points last Friday. This marks its lowest level since January 22, 2020, indicating stability and investor satisfaction in the American stock markets. Today, the VIX is hovering around the 13-point level.

This noticeable decline is attributed to several factors, most notably:

• The US dollar index, measuring the performance of the dollar against a basket of six major currencies, declined, breaking the 103-point barrier, and recording 102.47 points yesterday—its lowest level since August 11, 2023. Additionally, there was a decline in US Treasury bond yields of various terms.

• Seasonality: The months of November and December are usually characterized by positive performance of US stocks, known as the SANTA CLAUS RALLY.

• Markets started pricing in a roughly 43% rate cut in March 2024, reaching around 100 basis points in 2024.

• Positive US economic data for stock markets, such as a slowdown in the consumer and producer price indices, along with a decline in jobs data, all indicate the possibility of an end to the monetary tightening cycle followed by the US Federal Reserve.

However, the question arises: Is it time for investment institutions to sell these stocks, constituting a large portion of their portfolio, in order to carry out profit-taking operations that are usually applied at the end of each year, known as window dressing?

Finally, the markets are closely awaiting today’s release of the Core Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation indicator. Expectations are that it will record 3.5% on an annual basis, a lower percentage than the previous reading (3.7%). Any decline in this indicator will give upward momentum to US stocks and thus contribute to a further decline in the fear index.

Technically, if the pivot point at 13 points is broken, there is a possibility that the VIX will target the support levels of 12.31, 11.71, and 11.03. If it exceeds the pivot point, it is likely to target the resistance levels of 14.31, 15.57, and 16.62.


Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.

Taurex is the trading name of Zenfinex Global Limited, Stochastic Africa SL Ltd, Zenfinex Global LLC, and Zenfinex Limited.

Zenfinex Global Limited is registered in the Republic of Seychelles with registration number: 8428731-1 and is regulated by the Financial Services Authority of Seychelles (license number SD092). Its registered office address is F20, 1st Floor, Eden Plaza, Eden Island, Seychelles.

Stochastic Africa (SL) Limited is a company registered in Sierra Leone with Company Number: SL270319STOCH05271 and is licensed by the Bank of Sierra Leone under license number BSL/SAL/2023 and with the registered office at 148D Wilkinson Road, Freetown, Sierra Leone.

Zenfinex Global LLC is a company registered with the Financial Services Authority in Saint Vincent and the Grenadines under registered number 138 LLC 2019. Its registered office is Hinds Building, Kingstown, Saint Vincent, and the Grenadines.

Zenfinex Limited is a company registered in England and Wales under registered number: 11077380. Authorised and regulated by the Financial Conduct Authority under firm reference number 816055. Its registered office is 4th Floor, 4 Eastcheap, London, EC3M 1AE, United Kingdom.

*All trading involves risk.

Back

Popular Posts

Gold’s Bullish Trend: Factors and Technical Indicators Supporting Its Rise

EUR/GBP Pair: Technical and Fundamental Analysis Amidst the Downtrend

Reserve Bank of Australia Holds Interest Rates at 4.35% Amidst Declining Australian Dollar

Brief Overview of Key Economic Events from the Past Week

Lorem Ipsum

Lorem ipsum dolor sit amet, consectetur adipiscing elit.

Here are some related articles you may find interesting:

Market Insights​

December 12, 2024

Gold’s Bullish Trend: Factors and Technical Indicators Supporting Its Rise

The price of gold reached $2,726 today, marking its highest level since November 6, 2024, and it is currently trading near the $2,715 level. Gold...

Market Insights​

December 11, 2024

EUR/GBP Pair: Technical and Fundamental Analysis Amidst the Downtrend

The EUR/GBP pair continues its downward trend, having recorded 0.8240 today, marking its lowest level since March 7, 2022. This indicates a decline of around...

Market Insights​

December 10, 2024

Reserve Bank of Australia Holds Interest Rates at 4.35% Amidst...

The Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.35% in its meeting today, marking the eighth consecutive month at this level. The...

Market Insights​

December 9, 2024

Brief Overview of Key Economic Events from the Past Week

Last week witnessed several significant economic events globally. In the United States, economic data showed mixed results. The Manufacturing Purchasing Managers' Index (PMI) rose to...

Ready to Elevate Your Trading Journey?

Open a Taurex account and start trading today.

We’re Sorry

Access to tradetaurex.com
is unavailable in your region

tradetaurex.com is required to abide by global laws and therefore the information on this site is not directed at residents of the United States, Canada, North Korea, Iran, Myanmar, Belgium, Spain, France, Japan, South Korea or any particular countries and is not intended for distribution to, or use by, any person in an country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.