With 10 days left before U.S. voters cast their ballots for the next President, we’ve just learned from a variety of news agencies that FBI Director James Comey has reopened their investigation into Hillary Clinton’s handling of sensitive government information due to “the existence of emails that appear to be pertinent to the investigation.”
Price on the SPX immediately dropped on this revelation. This is reflected in the drop shown on the SPX:VIX ratio chart below (as of 1:50 pm ET today)…price is now below the 200 MA, and the 3 technical indicators are displaying new “SELL” signals.
We’ll see whether this new investigation trumps what I mentioned in my last post and becomes the “October surprise” that has been rumoured to surface in the media for months, or whether it’s just a short-term distraction designed to trap market bears.
Either way, volatility will remain elevated as long as price on this ratio stays below the 150 level.
