The situation in the South Pacific remains complex, and all of these relevant factors must be monitored to determine when the trends may change.
The chart gives a good idea of U.S. equity market fear and volatility.The pair trades are strongly correlated with volatility and are generally inverse to the S&P 500. The chart is moving toward a bottom, which may signal that equity markets are too complacent.
Equity markets have made new highs and been the market of choice for global investors over the past few weeks, which may mean it's time for a pullback. The lack of movement following better-than-expected retail numbers and the low trading volume could signal waning momentum in U.S. equity markets. At the time of publication the author had no position in any of the stocks mentioned. Follow @AndrewSachais This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.