The slow-motion ascent remains in place - $SPX $VIX

By Lawrence G. McMillan

Once again, $SPX made new post-2008 closing and intraday highs, and now it has finally closed above the 2011 intraday highs (oh, and yes, the Dow Jones Industrials closed above 13,000, so maybe we can stop hearing about this ridiculous and meaningless number from the media for a while).  There is strong support in the 1340-1350 area. The slow-motion ascent remains in place. The last time that $SPX closed below its 20-day moving average was December 20th, 2011.  The last day that $SPX even touched its 20-day moving average was December 21st, 2011. That was 46 trading days ago.  These low-volatility, streaks of $SPX levitating above its moving average are perhaps more common than one might think, but this is still a very long one – in the top 5 in history.  They all pretty much end the same way: eventually $SPX closes below its 20-day moving average, and then a much more volatile environment emerges.  That doesn't necessarily mean the market declines, however.  It seems to me that everyone's nerves are starting to get a little bit frayed as they await the inevitable bump in volatility that is certain to come.  But when?...

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