Excerpt from CNBC quoting DataTrek co-founder Nick Colas:
….”A key measure of stock volatility is providing clues that investors should be wary of the recent market rally, according to Data Trek Research co-founder Nicholas Colas.
The CBOE Volatility Index has come off its most recent mid-June highs and now is trading around its long-term average of 20.
At the same time, the S&P 500′s top five sectors by market cap have been moving largely in lockstep up and down with the index…
“Lined up against prior times the VIX was at similar levels, the correlation number should be lower. But here we are, nonetheless,” Colas said in his daily newsletter to clients Wednesday evening. “The VIX close at 20 [Wednesday] is promising something stocks have not yet actually delivered, namely a healthy decoupling of sector price action from the overall market”….
Full article here on CNBC.