Volatility fractionally higher

With the main indexes closing moderately higher yet again, the VIX managed a micro gain, settling +0.75% @ 13.41. With the FOMC announcement tomorrow at 2pm, there is a moderate opportunity for a sharp equity reversal, with VIX spiking into the 15/16s.


VIX'60min

VIX'daily3

Summary

First...let me be absolutely clear.

ALL equity cycles are outright bullish, not least the bigger weekly/monthly charts, which are offering another 15/20% by late spring 2014.

However..we are clearly over-stretched in the near term, and there is a fairly significant risk of an equity reversal tomorrow once the FOMC announcement has been made at 2pm.

VIX could easily spike into the mid teens, but anything over 16 looks very unlikely, even if the market can muster a fall of more than 1.5%.
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Tomorrow..should be highly entertaining.

more later....on the indexes