Monday, 31 March 2014

Volatility falls into end month

With equities battling higher across much of the day, the VIX was knocked back into the 13s, and was unable to claw back, settling -3.8% @ 13.86 (intraday range: 14.16 - 13.57). If sp >1883, then VIX looks set to slip into the 12/11s.





*a rare look at the VIX monthly chart, which had a net decline of -1% this March.

The hourly VIX cycle is arguably close to floored, but..if the equity bulls do manage to break >sp'1883, then VIX will be further crushed for the rest of this week.

Daily VIX candle was a reversal doji candle, the second consecutive reversal. Although MACD (blue bar histogram) cycle ticked lower for the third day... no sign of a turn yet.

The VIX 20s look very difficult, and are most certainly out of range, unless bears can take out the key low of sp'1834.

more later...on the indexes