Volatility knocked lower

With most equity indexes +1%, the VIX closed sharply lower, -13.6% @ 17.23. With the sp' having bounced from 1737 to 1773, many traders are now back to 'ohh, its all fine again in market land'. The Friday jobs report will be decisive. VIX upside target remains 22/23, if sp'1710/1690.


vix'60min

vix'daily3

Summary

So..we've seen the VIX get knocked from the 21s to the low 17s across just three trading days.

In terms of the smaller hourly cycle, I'd be real surprised if we fall tomorrow, but hey..it is all dependent on how the market interprets the jobs data. Even if I knew the number, it is usually too difficult to judge how the market will interpret it.

Will tomorrow be 'bad news is bad news' or 'bad news is good news' - the latter, as in 'delayed taper'3.

Even though the VIX dropped hard again today, one thing that can be said..volatility has indeed come back to the market. The equity price action really is pretty dynamic lately. The days of relentless algo-bot slow motion melt now seem a long time ago.
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more later..on those bouncing indexes