Volatility slips lower

With the main indexes rallying in the morning the VIX dropped around 6%. Despite the indexes closing largely flat, the VIX still failed to rally back to evens, closing 4% lower into the mid 15s.

The VIX remains completely bizarre, showing zero concern in the wider market.


VIX'60min

VIX'daily

Summary

Bears have a real problem for Friday. We have a clear bear flag on the hourly chart, and unless we can battle into the 16s, this bear flag will more than likely play out.

The daily cycle is still showing underlying positive momentum for volatility, but..its only moderate. It won't take much to start this ticking lower.

So, its a real mixed bag in VIX land. Once again, I'll note that whilst the VIX is <20..it is pretty unreliable.

More later