Monday 16 December 2013

Volatility gains with the indexes

Whilst the main indexes closed with rather impressive gains, the VIX managed a minor gain, settling +1.7% @ 16.03. There is certainly a touch of market concern ahead of the FOMC though, but once that is past..VIX should melt lower into year end.


VIX'60min


VIX'daily3


Summary

The fifth consecutive daily gain for the VIX..which in itself is somewhat unusual.

Certainly, market volatility is creeping higher, but the 20s look out of range until at least late Jan/Feb.

Equity bulls should be seeking a break of trend, and for that, will need VIX <15.50 by the end of this week.

So long as the Fed do not change policy and/or spook the market with something 'odd' this Wednesday afternoon, VIX should start to melt lower this week..and probably for the remainder of the year.
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more later..on the indexes