S&P500 / VIX Ratio & USD LIBOR

The ratio ended today just shy of 69.

What was interesting was that the VIX finished above its lows for the day at 16.91 which is still slightly above its Jan closing low of 16.86 (note: today's intra-day low was 16.52). With all the euphoria (based on loose government monetary and fiscal policy which will come to bite later on), I may be one of the only people here running against the tide but I'm a firm believer that there is another leg down coming soon based on Ashraf's analysis - I don't know the catalyst for this (may be black swan event or China raising rates) but the down legs are usually done under big volumes (unlike the recent up legs) and could wipe 200-300 points from the FTSE (bringing it close to its 50 day simple moving average) in a matter of 2/3 days and bring the VIX above 20 again... Just my thoughts - of course we can always keep going higher but then nothing goes up in a straight line and we're way overdue for a breather.

at this point there is very little (given what we already know) that could trigger a sell off in stocks regardless of interest rates and dollar strength. Gold however is more prone to sell of in my opinion.

i would only concerntrate on macroeconomic fundamentals and technical analsysis at present.

Stocks will keep going higher because they are seem cheap based on past performance only and retail investors see this. since there are little signs of deflation for now i cant see them going down.

I think we have 2 catalysts

1)Fed will stop buying RMBS after March

2)March NFP number

Those two things could ignite some fire. what do you guys think?

I think we might have few follow through days, but it's clearly overbought. The question is wheather we are going to consolidate now or shoot the moon.

Doug kass is shorting Russell index with the leverage etf(TWM) which means he has a high conviction for the market to go down.