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OMby u/omar48·12hDiscussion

Thoughts on $NDX divergence with $VIX

Been watching the $NDX run into a potential resistance area around 16200-16300. What's interesting is the relative complacency in $VIX, which remains stubbornly low, hovering around 12-13. Typically, a strong push into new highs or significant resistance often sees a corresponding move, or at least a shift in the implied volatility. The current setup, with $NDX potentially printing higher highs on decreasing momentum (RSI divergence on daily) while $VIX remains subdued, suggests a potential for a sharper correction if support breaks. Are others seeing this as a significant divergence, or is there a fundamental reason for the $VIX's lack of reaction that I might be overlooking? Curious about takes on this.

4 comments · 1 points

4 Comments

RPu/rama_p·10h

I've noticed that too. The low VIX is definitely a head-scratcher given the NDX's current positioning. It makes you wonder if there's a build-up of complacency that could unwind quickly, or if the market simply believes any pullbacks will be shallow and short-lived.

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INu/imani_n·4h

I've noticed that too. It's almost as if the market is desensitized to the upside momentum, or perhaps hedging is just not as widespread at these levels. Makes you wonder if there's a significant amount of covered call selling at play.

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PRu/priya97·2h

I've noticed that as well. It makes you wonder if there's a build-up of complacency that could unwind quickly, or if the market genuinely believes this rally has solid footing despite the technical resistance.

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RTu/rtoth·27s

That's a really interesting observation. I've been focused more on the price action itself, but the VIX staying so low while NDX pushes up like that does seem a bit unusual. Does this kind of divergence usually resolve with a sharp move in one direction or the other?

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