Volatility slumps into the close

With the indexes staging a closing hour rally to close largely flat, the VIX saw earlier gains of 5% vapourise, and closed 2.6% lower @ 16.62. Clearly, the close was a very disappointing one for those on the bearish side of the market.


VIX'60min

VIX'daily

Summary

A very disappointing close for the bears. The VIX teasingly almost broke into the 18s in the early afternoon, but with the indexes rallying back to evens, the VIX closed badly. The red close was indeed a bad one, and does not bode well for Tuesday.

Next soft support is around 16.25/00, which looks likely early Tuesday.

It will be absolutely vital that the VIX closes above 16 tomorrow, and preferably even moderately green, otherwise the near term trend is going to shift back to the bulls.

More later