"We are growing concerned about the potential for a pause or near term correction in the S&P500," warns BofAML's MacNeil Curry, as the options market flashes a warning to US equity bulls.
S&P500 volatility warns of complacency
We are bullish stocks, with the S&P500 targeting 2080/2100 into year end. However, in the near term, equity volatility warns of complacency and the POTENTIAL for a correction. Specifically, the VXV/VIX ratio (VXV is the BBG ticker for 3m SP500 Volatility) has reached levels that have often led to a market pause/correction.
While such a pullback would ultimately be corrective, BE ALERT.