Volatility Gauge Flashes Green Light for S&P 500 Bulls

  • VIX futures curve in prolonged inversion amid war in Ukraine
  • History signals U.S. stock market gains after some inversions
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A pattern traced by the S&P 500 index’s volatility gauge is vindicating Wednesday’s dip-buyers.

The pattern stems from the futures curve for the Cboe Volatility Index, a gauge of implied equity swings for the U.S. benchmark derived from options trading.