Volatility slips into the close

Despite equities slumping on morning war-talk from Boehner, the VIX never really showed any power, and with indexes recovering into the close, the VIX settled -2.3% @ 16.61. Near term trend looks bearish, and a return to the low 15s looks very viable by early Thursday.


VIX'60min

VIX'daily3

Summary

For the equity bears out there, the VIX is still not showing any real power. VIX 20s are not that far off, but in this QE supported market, the bulls are still relatively calm.

For me, the only issue is whether both of the big gap zones are filled in the coming days. Considering how twitchy the market was this morning, I find the notion of a straight-up ramp to the sp'1680s highly unlikely.

So..best guess...sp'1660s...with VIX in the low 15s..before the next wave.
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more later..on the indexes