Volatility battles higher into the close

With the main indexes on the slide, the VIX battled higher across the day, settling +10.1% @ 15.31 The VIX looks set to max out in the 15/17 zone early Thursday, before renewed equity market upside into end year. VIX 20s still look nonviable until late Jan'2014.


VIX'60min

VIX'daily3

Summary

Certainly, an interesting day for those watching equities and the VIX.

The daily close in the 15s most definitely merits some attention, but really, we still only have a VIX in the mid teens.

My best guess for the near term, is a floor for the sp'500 in the 1774/72 zone.- early Thursday. That will probably equate to a VIX in the upper 15s/low 16s. From there, I'd look for the VIX to melt lower

The only wild card is of course the FOMC of next Wednesday. I continue to believe taper this side of Christmas is simply a no-no for a multitude of reasons.

I see no real power on the equity bear side, and VIX 20s look very unlikely until late Jan/early Feb.
--

more later..on the indexes