Volatility down yet again

With the main US indexes holding gains of some degree across the entire day, the VIX was naturally lower, closing -2.9% @ 16.37. The big question for VIX traders is whether 16.00 was the floor in this latest multi-day fall from the high 21s.


VIX'60min

VIX'daily3

Summary

Considering the sp' broke into the mid 1620s, its almost a wonder that the VIX didn't break back into the 15/14s.

Yet, there is a lot of key jobs data in this short holiday trading week. No doubt a lot of traders are now somewhat anxious - after the recent ramp from sp'1560 to 1626, to avoid a possible Wednesday/Friday equity smack down.

Equity bears can't really have any confidence now until VIX is back above the ever-important threshold of 20.

All things considered, VIX 20 does look rather unlikely at any point this week.