When VIX and SPX Rise Together – the 2016 Version

On July 11 and July 12 both the S&P 500 and VIX rose on the day.  This brought out an old blog I wrote in 2013 discussing what the stock market has historically done when both the S&P 500 and VIX rise two days in a row.  I updated the numbers from that last study and now we have 92 occurrences where both indexes rose two days in a row (today was number 93 and the jury is still out on the subsequent market action.  The table below summarizes what the S&P 500 did on average the following five trading days.  Note the percentage times the market was lower is right around the 50 / 50 range, but on average the market is lower after two consecutive SPX / VIX up days.  I have on my to do list next week to circle back and see how the 93rd time turned out.

VIX and SPX