SPY - S&P 500 Peaks And VIX Valleys As Market Signals
2024-06-08 02:25:19 ET
Summary
- The S&P 500 is moderately overvalued with a P/E ratio above its historic mean, but it reached a new all-time high.
- The CBOE Volatility Index (VIX) is below 13, indicating low volatility in the market.
- Days with both an all-time high for the S&P 500 and a VIX below 13 were historically followed by a lower than average three-month performance.
The current P/E ratio for the S&P 500 is around 27.5, or roughly one standard deviation above its historic mean as recorded since 2011. Such a market valuation can be described as (moderately) overvalued. The high valuation goes hand in hand with the S&P 500 hitting a new all-time high on 5 June 2024. At the same time the CBOE Volatility Index ( VIX ) is below 13....
S&P 500 Peaks And VIX Valleys As Market Signals