What The VIX Is Telling Us

Posted by Joe Duffy | Oct 24, 2025 | Joe Duffy's Trading Advantage | 0 |

The last two Fridays have seen the stock market under selling pressure. Tariffs talks are still bubbling in the background. So gotta be careful. The VIX is threatening new lows (VIX moves contrary to the stock market). At this point new lows in VIX are probably unsustainable, and would amount to a liquidity grab (meaning VIX seeks a lower level where it finds significant buyers). If VIX were to find those buyers, then that would mean lower stock market.

So my level of comfort with long side for stocks is tempered here. We could easily see a few days of selling coming soon. As attached chart shows, that would mean a double top and retrace in the SP 500.

Thanks,

Joe

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Joe Duffy

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