Volatility destroyed

With the indexes seeing a significant opening gap over the key sp'1448 high, the VIX dropped sharply at the open, and the closing hour action was equally bad. The VIX closed -18.5%, to settle @ 14.68 - which is the lowest VIX level since mid October.


VIX'60min

VIX,daily

VIX'weekly

Summary

On the weekly chart, it is incredible to see a decline of 35% in just two trading sessions. It is one of the biggest declines we've seen since October'2011. With two trading days still left of this week, how low will the VIX go?

VIX in the 13s seems likely..if only briefly.

Of course, if we see the sp' break over the Sept' QE high of 1474, then a VIX <13 is feasible..and then we really are in the twilight zone again.
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More later..on the indexes.