As euphoria has come back into the markets, with earnings coming in strong and the global macro environment looking a lot less hostile, US equities have made all-time highs in recent trading sessions.
However, in spite of this trend, investors and traders should keep an eye on the VIX and market volatility.
The VIX has reached our "Bounce Back" zone, indicated by our Weekly Support levels of around $11.91 in price, and 42.07 in the RSI. The "Bounce Back" zone is an area where volatility creeps back into the market after a period of calm.
As can be seen in the accompanying chart, the VIX is currently at (or at the very least around) this level, both in terms of price and RSI - a level that usually sees a jump in volatility shortly after.
Thus, after a period of relative calm and fresh new highs in the markets, we would just caution investors to keep an eye on the VIX, as a bout of market volatility may be overdue.