Wednesday, 3 July 2013

Volatility fails to hold minor gains

With the main indexes holding together very well - considering the news, the VIX failed to hold minor opening gains of 3%, and actually closed a touch red, -0.5% @ 16.35. Daily VIX cycle may have floored, but if the bulls can break >sp'1624, then VIX will slip to the 14s.




It remains a classic situation, where despite the multiple negative news stories out there, equities are holding together, and the VIX is showing a virtually fearless market.

Capital inflows continue to be a real prop to this market, along with the regular doses of QE.

Just breaking back over the VIX 20 threshold will be a real challenge for the bears. Right now, it doesn't look possible, baring a break of sp'1600, and consistent trading in the 1570s..and lower.

more later..on those resilient indexes.