Volatility continues to increase

Unlike Tuesday, the US equity market failed to see a latter day rally, and that allowed the VIX to build very strong gains, settling +24.4% @ 18.53. There looks to be high probability of a test of the 20 threshold. Best 'fair case' for the equity bears...VIX 22, with sp'1980.


VIX'daily3

VIX, weekly

Summary

*a very notable third consecutive daily gain for the VIX
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So.. we've hit the first target zone of 17/18s, and today's daily close in the mid 18s does keep open a 'small' chance of the secondary zone of 22/25 being hit. That latter zone is a very clear price gap from the turn in mid October.
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VIX bulls need to be very mindful of next weeks FOMC. Whether the VIX is 20, 21, 22.. or even a little higher, what is clear, the appearance of the Yellen will very likely mark a key turn.
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more later.. on the indexes