Volatility rallies late in the day

Despite the indexes closing broadly higher, and holding those gains into the close, the VIX rallied in the latter part of the day, closing just fractionally lower to close @ 15.22


VIX'60min

VIX'daily

Summary

Clearly, the last few months have seen the VIX stuck in the very low teens. There remains a complete lack of fear in the market, and there is no sign of

Until the VIX breaks back over 20 - with a weekly close >20 (as is my third red flag criteria), bears are facing a real problem.

Despite the late day rally, what also remains the case, is that a VIX <20 is not reliable. With the indexes closing as they did, the continuing minor VIX movement is nothing less than static.

More later