🏆 Today's Chart of the Day was shared by @SubuTrade.
- The CBOE Volatility Index ($VIX) dropped for the fourth straight session, hitting a fresh 52-week low.
- Subu notes that volatility has fallen sharply over the past month, and these rapid declines have been followed by strong equity gains.
- In every prior instance, the S&P 500 was higher one week and one month later. This would align with the Santa Claus Rally period that has been absent over the past two years.
The Takeaway: Sharp declines in volatility have consistently led to near-term equity gains, suggesting a favorable setup for a potential Santa Claus Rally.
