Volatility again fails to hold gains

The VIX spiked higher in the afternoon, but again failed to hold the gains, and closed -0.01 @ 16.27. Perhaps most important to recognise, was the VIX put in a marginally lower high, and with the daily chart looking maxed out, VIX could easily be in the 14s later this week.


VIX'60min

VIX'daily3

Summary

So, the second day running where we saw VIX in the 17s, but yet again, its arguably another failed spike. For the equity bears out there seeking sp'1600/1597 gap-zone later this week, this should be a real concern.

Similarly, for the equity bulls, today's lower VIX high was one of the more bullish aspects of the day.

Underlying daily MACD (blue bar histogram) cycle ticked higher again, but looks very toppy now. It won't take much for a rollover to start tomorrow or Thursday, and there is a fair way down from current levels.

There is little reason why the VIX won't be trading in the low 14s by the end of this week, and that might equate to sp' back in the 1660s.

more later, on the indexes