The VIX is Flashing a Sell Signal

CBOE's Volatility Index, the VIX, is about as good a technical indicator of investor complaceny that you'll find. And right now, as you can see from the cart below (courtesy of Decisionpoint.com) the VIX is at a new four-year low. As you'll see in the January paper issue of SI next week, anytime the VIX is this low, the overall stock market has suffered some quick setbacks. Thought for the evening: perhaps the January effect came early this year...in December...and 2004 will kick off with a correction, not a rally. VIX Making a New Five-Year Low: "Where's the Risk?" investors ask.