Volatility smacked lower again

With the main indexes closing significantly higher for a second day, the VIX declined again, falling almost 5% to settle @ 15.57. There is no sign of even mild concern in this market, and a VIX in the 15s remains remarkably low.


VIX'60min

VIX'daily

Summary

Urghh, another crazy day in the US market. Considering the index gains, it is not surprising to see the VIX lose almost 5%.


Clear thresholds for the bears

Whilst the main indexes have now broken above their FOMC highs from last Wednesday, its important to keep in mind the key levels.

The first soft level of importance is around VIX 17.50.

However, infinately more important is the 20 level. As many recognise, VIX 20 is a key level, and a few daily closes >20 would signify something major is underway.

Without question, a lot of the major 'bear money' would be wise to wait for the 20 threshold to first be breached, before taking any further short index - or long VIX positions.
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more later..on the indexes.