Volatility Divergence – VIX vs. MOVE

Volatility Divergence – VIX vs. MOVE When MOVE is below the 50th percentile and VIX is above the 80th percentile, the average annualized S&P 500 price performance has been close to +21% compared to just over +7% the rest of the time. Image: Bloomberg

Discretionary vs. Systematic Equity Positioning

Discretionary vs. Systematic Equity Positioning There is still a wide divergence between systematic equity positioning at 58th percentile and discretionary equity positioning at 98th percentile. Image: Deutsche Bank Asset Allocation

S&P 500 and Investment Grade Bonds

S&P 500 and Investment Grade Bonds The divergence between investment grade bonds and the S&P 500 tends to be a bearish signal for the S&P 500. Image: BofA Global Research

S&P 500 and 3-Month VIX Relative to VIX (VIX3M/VIX)

S&P 500 and 3-Month VIX Relative to VIX (VIX3M/VIX) The 3-month VIX relative to VIX (VIX3M/VIX) now shows a bearish divergence, which tends to be a bearish signal for the S&P 500. Image: BofA Global Research

S&P 500 vs. Korean KOSPI

S&P 500 vs. Korean KOSPI Is the current divergence between the Korean KOSPI and the S&P 500 a red flag? Image: Lohman Econometrics

VIX and U.S. Equity Put/Call Ratio

VIX and U.S. Equity Put/Call Ratio The divergence between the VIX and the put/call ratio could suggest a market susceptible to a downside shock. Image: Morgan Stanley Wealth Management