#SP500 Key warning signal, beware of high-level retracement

The current US stock daily level is at a high slope, and is about to hit a new high, and the RSI index remains high, facing a large retracement risk (Figure 1)

At the same time, the VIX index is 14.85 (Figure 2), which usually means that the market has entered a low volatility phase

On the whole, investors generally believe that future volatility will be small. This sentiment often leads to overly optimistic expectations and may even produce irrational prosperity.

At this time, the market may ignore potential risk factors and believe that prices will continue to rise steadily.

In the midst of the hustle and bustle, it is precisely necessary to be vigilant about the risk of retracement, protect the profits that have been obtained, and avoid the risk of missing out on key points through options.