The VIX surged today, but it was partly due to the futures contracts rolling over into the next month. The VIX closed 11.5% higher, to settle @ 17.36. We remain well below the key VIX '20 threshold.
The VIX futures rolling forward one month contributed to around half of today's gains.
Increasing the first target level
Yesterday, I noted the 17.50 level as key, yet, when you factor in today's issue about the futures moving ahead one month, I will have to raise that key level to at least 18, if not even 19.
As I keep noting, until we see VIX >20, bears still don't have the first real sign of market fear since the June low of sp'1266 - when the VIX was in the 27s.
Buying VIX lottery tickets.
There were some crazy VIX call trades flying through today, with people buying 50s, even 60s, for front month January VIX.
More later..on the indexes.