Friday, 22 April 2016

VIX cools into the weekend

Whilst equity indexes closed moderately mixed, the VIX was broadly subdued, settling -5.2% @ 13.22. Across the week, the VIX saw broke a new multi-month low of 12.50, with a net weekly decline of -2.9%. Sustained action above the key 20 threshold looks out of range until latter half of May.





*the closing hour saw the usual 'games', with the VIX being whacked into the close.

Suffice to add, the VIX remains broadly subdued, although that should not be entirely surprising as equities broke new multi-month highs this week.

Underlying MACD (blue bar histogram) remains deeply negative, and at the current rate, volatility bulls won't see a bullish cross until at least mid May.

*if sp'2050/40s by end of next week/month, that might equate to a VERY brief foray to the upper teens. What should be clear.. sustained action >20 looks out of range for some weeks.

more later... on the indexes