The speaker connects VIX bounces to S&P 500 swing highs, pointing to May 19's multi-month peak and the May 28 rally after Trump's tariffs were ruled unlawful. Rising put demand in SPX options suggests the market is nearing resistance where investors are hedging downside.
We're seeing multiple areas of support. Each time the VIX bounce at this particular trend line, it coincided with an S and P top where the S and P ended up selling off. So this was the previous swing high that occurred on May 19, about a week and a half before May 28. And if we pan out, you could see that this was actually a multi month high. The price action into that line was very, very strong, very nice bullish momentum. This occurred after the market close closed on Wednesday, May 28th. There was actually news that the US International Corps deemed Trump's reciprocal tariffs as unlawful. So when that news came out, you had some investors probably thinking, oh great, the tariffs are off, so growth is going to increase and chase this move above that previous high. So the options positioning in SPX was telling you essentially that it was coming into an area where that demand for SPX puts correct.
