#VIXIndicator UPSIDE WARNING fired. We have just hit 3 consecutive VIX closes below the Fib 78.6% retracement. This historically has meant that volatility has subsided in the near term, and we should be seeing further strength to the rally in the SPX.

This also sets a new VIX low of 16.05 from Friday, 3/4.

Tuesday’s levels that would negate this and switch us to a downside warning are 21.05 and 23.58.

This is the first time a VIX upside warning has fired since I developed the indicator, so it will be interesting to see if SPX pushes higher before any big drops. SPX has risen in the days or weeks following this signal over the majority of times it has fired since 2000.