VIX'60min
VIX'daily
VIX' weekly
Summary
It was a very muted open for the VIX. Whilst the Dow was -100pts around late morning, the VIX was still largely flat. Yet, the VIX did finally explode (relative to action in recent weeks), and surged 17% late afternoon. The close was slightly off the highs, but the close in the 17s was a very welcome sight for the bears.
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The VIX daily chart offers good upside to 19, or the Sept'1 high of 21. That would seem entirely possible on a Monday opening gap lower.
However, more importantly, the VIX weekly chart continues to battle higher, and is suggestive of upside, somewhere in the 20-24 range.
Lets be clear, if we see the VIX >24 at any point, we could see a brief intra-day spike into the low 30s. That would make for a superb exit for those currently long VIX calls, or index puts.
The bears are on the verge of taking back control. It will be vital on Monday for the bears to hold onto today's gains, if not build on them.
More later.