Volatility climbs into the close

With the indexes seeing further weakness, the VIX climbed into the close, +10.4% @ 13.99, although is still below the spike highs of early Tuesday. Bears need to break >15.50, which will likely need sp<'1538, the latter of which won't be easy in this QE-POMO fuelled market.


VIX'60min

VIX'daily3

Summary

Suffice to say, Friday will be particularly interesting to watch.

Will the market gap straight under the recent sp'1538 low, or will it instead battle higher and take out the sp'1563 high?

I'm still holding to the original outlook, and that is highly suggestive we'll at least be briefly trading in the sp'1570s. If that is correct, then VIX will likely once again fall back into the 11s.

On the bigger outlook, I do certainly look for much higher VIX levels, and some sort of VIX explosion, probably breaking above the key 20 threshold in April.

More later..on the indexes