With the main indexes showing some rather impulsive downside action, the VIX jumped higher, hitting a peak of 18.71. With the break <sp'1675, the VIX door is now open to the key 20 threshold. Any daily close in the 20s would bode for deeply lower equity levels in the very near term.
For the equity doomer bears out there, the bigger VIX weekly chart is really one to keep in mind. The first big primary target is the 200 weekly MA..around the key threshold of 20.
A daily/weekly VIX close in the low 20s would really open the door to much higher levels. Since the Oct'2011 low, we've never seen the VIX able to hold the 20s for more than a few days.
We are again about to see whether the VIX can spike into the 20s...but also hold the 20s.
Tomorrow...will be VERY interesting in terms of how the VIX ends the week.
more later..on the indexes