Volatility melts lower

With the equity indexes clawing back all of Wednesdays declines, the VIX melted lower across the day, closing -6.2% @ 13.59. A Friday close <13 would bode very well for the bulls, whilst bears are still needing VIX 16/17s to indicate any type of real market concern.


VIX'60min

VIX'daily3

Summary

The hourly charts clearly show a rather gradual decline in the VIX across the day.

What should be a real concern for the bears is the daily MACD (blue bar histogram) cycle which is now ticking back lower. Today's VIX decline has really messed things up for those hoping for significant volatility to close the week.

My real concern is that the past 7 trading days are perhaps a large bear flag, rather than the original idea of a flooring stage.

Arguably, any break <13, will clarify things have turned fully to the market bulls.

more later..on the indexes