September Outlook

One thing to keep watch closely over the next week or two is the Volatility Index (VXO) which is very close to nearing its 52 week low around the 10 level. In the past when the VXO has dropped to around 10 (point A) this has been followed by some type of correction (points B to C) in the S&P 500. Currently the S&P 500 is only about 14 points away from its early May high near 1325 and if it's able to rise back to its May high in the near term, and the VXO drops back to around 10, then this will likely be followed by a correction in the major averages at some point in September.


You can read our complete market analysis at
http://www.amateur-investor.net/Weekend_Market_Analysis_Sep_2_06.htm