Volatility cools a little

With equities breaking a new cycle low of sp'1926 in early morning, the VIX broke a new high of 17.98, but cooled, settling -3.3% @ 16.16. Near term outlook is for continued equity weakness, and that will likely see the VIX in the 18/19s.


VIX'60min

VIX'daily3

Summary

So, a moderate daily decline, but still...the broader trend in volatility remains to the upside.

With sp'1904 now seemingly likely next week, that will probably equate to VIX continuing to increase. In any case though, even if VIX breaks the big 20 threshold... it won't stay above there for long.

I would consider being long VIX.. but not in the current multi-week down cycle. Right now, I might go long VIX late Oct/early Nov'.

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more later... on the indexes