(Bloomberg) -- Equity bulls cheered as the S&P 500 Index closed at its highest since October, but there may still be a small fly in the ointment -- volatility. The Cboe Volatility Index has yet to confirm the equity rally as it hasn't formed a lower low to match the U.S. stock benchmark's higher high, according to Tom McClellan, editor of the McClellan Market Report . While it shouldn't be too difficult for the VIX to move lower, this type of divergence doesn't come along very often and can be “problematic,” he wrote.
To contact the reporter on this story: Cormac Mullen in Tokyo at cmullen9@bloomberg.net
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Matt Turner, Ravil Shirodkar
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