As StockBoardAsset shows on the 24-year monthly ratio chart below, bulls have pushed the S&P:VIX price into uncharted territory this year.
The REAL test for sustained market euphoria is now occurring, as the ratio probes a two decade ascending diagonal (red) line responsible for past market tops.
After 8-9 years of a central bank induced bull market, and pushing +2803% gains from lows, investors are making the fatal decision to get back in, as the final stages are here explained in the ratio.
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And for some more color, some bonus charts…
On a reward-to-risk basis, investors have not been this 'offside' since 1994…
And remember VIX speculators have never been more short…
And, uncertainty about VIX (VVIX) has never been higher relative to the uber-complacent level of VIX…
And finally, one wonders why, as Small Caps are bid to the moon on the heels of tax-reform-hype, investors are buying protection with both hands and feet…
Is time up?
And all this is happening as the one main driver of global financial markets is dropping the most in a year…
Which does not bode well for stocks…
But then again, it's probably different this time.
via http://ift.tt/2xp5Ncb Tyler Durden