With the main indexes breaking new highs in the morning, the VIX managed to hold fractional gains. With an index reversal, the VIX built gains of 8%..but they largely evaporated into the close. The VIX closed +1.8% @ 12.69. It remains a fearless equity market.
A disappointing end to the day for those on the bearish side. But then, that has been the case since the big turn on New Years Eve. Every day the algo-bots manage a little ramp, and that always helps to cool the VIX down.
Today's VIX action at least showed a little breakout - if briefly, and indeed, its not enough. Only with a close in the 14/15s can the bears start to get moderately excited about some kind of retracement in the indexes - perhaps to the sp'1450/40s.
It will be interesting to see where the VIX closes Friday. A close in the 14s would certainly confirm today's earlier (temporary) breakout.
I am long VIX from 12.34 (from last Friday), seeking an exit in the 16-18s, sometime in the next two weeks.
More later, on the indexes