Friday, 28 December 2012

Volatility Soars

With the indexes falling to pieces in the closing hour, the VIX closed for the second consecutive day above 20. In the brief AH trade, the VIX closed +16.69% @ 22.72. There was a notable spike of 23.23. The weekly close of VIX >20 is very significant, and a major warning of an index collapse wave.


VIX'60min



VIX'daily



VIX'weekly


Summary

A great deal of technical damage was achieved by the bears this week.

First, the two daily closes >20.
The weekly close >20.

The fact we closed in the 22s is a massive bonus to the bearish outlook into January.

Do not be surprised if we see a VIX (briefly) in the 30s next week, along with sp'1350/40s
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More later, on the those busted up indexes