Fundstrat’s head of research Tom Lee expects stocks to turn bullish based on recent movements of two fear signals, according to Markets Insider. Cboe Volatility Index or VIX and NYSE Tick Index have suggested stock-market panic that could pave way for bullish momentum.
With VIX or market fear index up 40% on Monday and Tuesday, Lee says this has only occurred 20 times since 1990.
NYSE Tick Index fell to a record low of negative 2,069 on Tuesday, a rare occurrence as it has only hit below 1,800 ten times.
Lees sees the sharp moves in VIX and NYSE Tick Index as bullish indicators as they occur during a stock-market panic before upturn.
Lee refers to the large VIX spike as a panic/reset that would welcome a bullish momentum.
The analyst says when NYSE Tick falls below negative 1,800, the S&P gained by about 22% in the next 6 months.
Major global stocks are currently mixed. SPY is up 0.089% on premarket, QQQ is up 0.49% on premarket, Euro STOXX is down 1.15%, HSI is down 1.81%, NI225 is down 2.49%
