Volatility cools down

Despite the market breaking under the 50 day MA of sp'1838, the VIX only spiked +2% in the morning. With equities seeing a latter day recovery, the VIX cooled down, settling -4.4% @ 14.89. Near term outlook is for VIX to make a play for the big 20 threshold, if sp' 1800s..or lower.


VIX'60min

VIX'daily3

Summary

Little to add.

VIX should find support in the low 14s this Wednesday, along with market getting stuck in the sp'1865/75 zone.

If the market does turn lower again - whether late Wed/early Thursday, VIX has a reasonable chance of spiking into the high teens. The only issue is whether the big 20 threshold can be broken..and held above.

more later..on the indexes