Tuesday, 18 September 2012

Volatility churning

The VIX closed moderately lower, -2% or so, in the low 14s. This remains a fearless market, with no concern of the underlying economy, nor the threat of any black swans.



VIX' weekly


Very little to note. VIX remains remarkably low. There is always going to be a moderate risk of a major gap higher to around 16/18 late this week/early next week.

Those doomers looking for VIX over 20, are going to need to see the sp' break under the recent low of 1397. That just doesn't seem likely right now. The big weekly VIX cycle has some interesting divergences, but a VIX under 20' is really unreliable.

More later