Friday, 31 January 2014

Volatility battles higher

Most notable action of the trading day was the double top in the VIX of 18.99. With equities seeing a typical latter day recovery, the VIX cooled down, went briefly negative, but settled higher by 6.5% @ 18.41. If sp' can break <1767 next week, VIX will see a mini explosion into the 20s.


vix'60min


vix'daily3


VIX'weekly


Summary

Volatility is clearly coming back into the US markets. For the first time (it seems like years), we are seeing some pretty interesting intraday swings.

This past week, we've seen the resistance zone of 19/20s hold the VIX, but, if we can break <sp'1767 next week, market should see a mini freefall..all the way down to 1710/1690s, and that would likely equate to VIX is mid 20s.

The weekly chart clearly highlights the key resistance in the 19/20 zone. A daily close >22 would be extremely significant, not least because it would take out the 2013 high!
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more later..on the indexes