Volatility primed to jump

Whilst the main indexes held moderate gains across the day, the VIX melted lower, closing -2% @ 14.53. However, the last hourly candle of the day was pretty bullish, and bodes for some degree of early Friday surge. VIX 16s look viable.


VIX'60min

VIX'daily3

Summary

Yesterdays black daily candle was confirmed by today's marginally lower close. Yet, today's drop was indeed only minor, and the hourly chart is looking bullish at least for tomorrow morning.

The real issue is can the market break last weeks double floor of sp'1635. If that can be done, then VIX 16s look an easy target.

more later, on the indexes