Volatility remains relatively low

Despite equities being somewhat weak across the day, the VIX never really showed much upside kick, only managing an intraday peak of 13.90, and settling +3.8% @ 13.80. Near term outlook is for a renewed push higher in equities, which should equate to VIX 12/11s.


VIX'60min

VIX'daily3

Summary

Considering the index declines - notably, -1.6% in the R2K, and -0.9% in the sp'500, the VIX was particularly weak. The daily net VIX gain of barely 4% does NOT support the equity bears case for major downside in the remainder of the weak.

Certainly, the daily MACD (blue bar histogram) cycle on the VIX is turning upward, but taken with the equity price action, I'm still not able to take the downside case seriously.

Equity bears need to take out the Monday low of 1866, last Monday's low of 1850...and even more critical...the 1814 low from a few weeks ago. Unless all of that is achieved, it remains a case of 'ignore the minor chop..and focus on the primary trend'...which does STILL remain to the upside.

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more later..on the indexes