Charting the S&P 500: Dangerous Complacency at the Wrong Time

Avatar photo Bob Lang on August 31, 2026

Complacent

Get ready for September, it promises to be one heckuva ride. Bulls are confident, and why shouldn’t they be? The S&P 500 is only a fraction away from all-time highs, earnings have been stellar for a second straight quarter and there inflation is not rising much. Seems to be a perfect storm for investors, yet one thing is missing: FEAR.

We look at the volatility index, the VIX, and see high complacency. This reliable indicator tells us how bullish or bearish sentiment truly is, and with the lowest level of the year tagged last week in the 14% range there is no mistaking the lack of fear. Remember, when the VIX is rising it means fear is rising, but when the indicator is coming down or just low the bulls feel there is nothing to fear about a drop in the markets.

September is here, and that is one of the worst-performing months of the year. The setup for a pullback is in place; of course many things can happen to change that forecast, but that is why we play the game.

Indicators have not changed much, candles remain blue and momentum is strong. Money flow ticked a bit lower and volume trends are weak, typical for this time of year.

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Posted by Bob Lang

Bob Lang is one of the country’s top options traders, an expert market technician, and a highly sought-after mentor and teacher. He is a private trader in equity and option markets and created his own hedge fund and options trading company called Explosive Options. He is also founder and Chief Options Analyst at Aztec Capital, LLC. He has been a regular contributor to TheStreet Pro's paid subscription products since 2009. Lang is both a short-term trader and long-term stock investor. He utilizes technical and fundamental analysis to find investment opportunities. His coverage for TheStreet Pro specializes in options trading, stock investing, and technical analysis. One of Lang’s claims to fame is his creation of the acronym FANG to describe the top tech companies at the time (Facebook, Amazon, Netflix, and Google). The acronym has since expanded considerably and is still widely used today. He is the author of the book “Know Your Options” and holds an MBA from the University of Redlands. When he’s not providing financial commentary for TheStreet, he can be found on the tennis court, reading, or traveling.

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