40-Year Wall Street Veteran Flags Rare VIX Signal as Warning for Stocks

Technical analyst Helene Meisler, who studied under Justin Mamis and later worked at Goldman Sachs, is flagging a short-term warning signal for stock traders. The VIX's Daily Sentiment Index (DSI) recently broke below 15 and fell to 13, which Meisler calls a "flashing yellow light," noting a single-digit reading would be a stronger red flag.
She also points to the 21-day moving average of the VIX put/call ratio dipping below 0.40, a level last seen twice in 2024, and the NAAIM Survey reading 102.66, indicating professional managers are buying stocks on margin, something also last seen in July 2024.
Meisler said short-term and position traders may want to consider locking in some profits, citing the seasonal adage "sell Rosh Hashanah, buy Yom Kippur," and wrote that if the pattern holds, the market should show some weakness within the next week or so.