The big question now is whether VIX breaks the low of Aug'17th of 13.30.
VIX'60min
VIX'daily
VIX' weekly
Summary
A huge - and possibly significant bearish engulfing candle on the VIX weekly cycle, with the VIX losing almost 18% this week. It could be signifying a huge new up move in the markets - the great anticipation of QE3 from the Bernanke.
Unless you believe VIX is going sub'10 in the weeks..and months ahead - with a 'booming economy', I just think this VIX move is another bonus to those bears who are bold enough to re-short next week. In option land, this VIX drop represents a huge discount for index puts and VIX calls.
However, as noted many times, until VIX starts put in a few daily closes in the low 20s, any index declines are to be dismissed.
More later.