Wednesday, 23 September 2015

VIX a touch lower

Whilst US equities closed moderately lower, the VIX was in minor chop mode, settling -1.4% @ 22.13 (intra low 21.14). Near term outlook is for renewed equity downside.. at least to the sp'1900 threshold, and that should equate to VIX 26/28 zone within 2-3 trading days.




Little to add.

VIX is set to turn positive on the MACD (blue bar histogram) cycle this Friday.. or next Monday at the latest. If that is the case, the VIX will be in the upper 20s.. perhaps low 30s.

The bigger issue is whether sp'1867 can be broken under, but even if that occurs, a divergence would seem likely.. with VIX no higher than 40/45 zone... with sp'1820.

.. and that would make for a key equity floor.

more later... on the indexes