S&P 500 Four-Day Rally Surges 5.8%, Options Bullishness Hits Rare Highs

S&P 500 gains 5.8% in four days, a move exceeding the prior three-month range. VIX rises alongside prices, and options bullish skew reaches a two-year high, signaling rare market conditions.

Woofun AI data shows that the S&P 500 climbed 5.8% over four trading days ending August 4th, a gain that surpassed the index's highest-to-lowest closing price range observed in the preceding three months. This rally places the four-day return in the 99.32nd percentile of all such windows over the past decade, with only 18 instances matching or exceeding this magnitude.

Concurrently, the VIX index rose 4.04% while the S&P 500 gained 1.79% on the final day, indicating that future volatility had not been fully discounted. Short-term options exhibited a bullish skew reaching a two-year high, with the average monthly bullish-to-bearish ratio hitting 0.9, a level of optimism seen at least once in four years.