VIX'60min
VIX'daily
Summary
With new QE, announced earlier today, clearly everything WILL be fixed with the economy, and thus volatility collapses. I feel so much better, don't you ?
The hourly cycle has certainly not conclusively levelled out yet, and that bodes for a possible further moderate rally tomorrow morning in the indexes.
The VIX daily cycle should level out by next Mon/Tuesday. Yet, what then ? The VIX seems to struggle just to get into the high teens, never mind breaking above the big 20 level.
Clearly, the market has seen a very impressive post QE reaction, the issue now is how far down will the retracement be? Arguably, bears need to see a break back under the recent low of sp'1397, right now..that looks an awful way down.
As things are, I am actually reasonably content, with a short from sp'1449, with a first exit target of 1420, within the next 3-7 trading days.
More later