Volatility continues to be crushed

With equities soaring for a second day, the VIX was naturally still on the slide, settling lower by a very significant -13.5% @ 16.81. Near term outlook offers continued cooling into year end... and beyond. VIX 11s, or even the 10s appear viable by mid/late January 2015.


VIX'daily3

Summary

Little to add.

VIX is clearly in a new multi-week down cycle. Typically... it will take a few weeks to make a floor, and then another 4-6 weeks of minor chop until the next 'brief spike'.

VIX 20s look off the menu until at least late Jan/early Feb.
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More later... on the indexes