Volatility climbs, but a lower high

Despite equities breaking under the Monday low of sp'1772, the VIX failed to break the Monday high of 18.99. The VIX settled +9.8% @ 17.35. Equity bears should be mindful of this divergence, and there remains potential for upside to the sp'1810/15 zone within the next 2-4 trading days.


vix'60min

vix'daily3

Summary

*a very notable black-fail candle on the daily charts, which should concern any equity bears holding short into Thursday.
--

So..the VIX did manage some significant gains, but the divergence between the sp' - breaking the Monday low..whilst VIX only managed the low 18s..should be a real concern to the equity bears.

I do broadly expect the key zone of sp'1767/65 to be tested, but that now seems more likely next week.

Any snap <sp'1765, and the VIX will snap into the 19s..if not the low 20s. The 2013 high of 21.91 is an obvious target, along with the 2012 high in the 27s, but the latter sure is a long way up from here.
--
more later..on the indexes