Volatility soars into the 20s

The VIX has broken the key 20 threshold for the first time since last December. It is a great victory for the bears, and bodes very badly for the equity bulls in the days, and next few weeks. Equities could easily bounce, but that won't negate the importance of today's break through.


VIX'60min

VIX'daily3

Summary

Well, I sure didn't expect VIX 20s today, and I don't know of anyone else out there who did.

Today's VIX close showed a touch of weakness, but still, this is first VIX 20 close since December, and equity bears should be delighted with it.

The only now is what level will the VIX spike to, when the sp' is hitting the lower weekly bollinger band - somewhere in the low sp'1500s.

Are the VIX 30s viable in this down cycle into early July? Considering today's action, there is the slight possibility of it.
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more later, on the indexes

Closing Brief - bulls massacred

With the market opening under the important sp'1620 support, the bulls were in trouble, and for the first time since last November, the bears took absolute control. Near term looks weak, and despite a very likely bounce, a move down to sp'1550/30 looks very possible next week.


sp'60min

vix'60min

Summary

Congrats to all those good bears who were shorting since the 1650s earlier this week. Its been a long time coming, but today is certainly one to revel in.
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*Ironically, yours truly remains on the sidelines, but that's okay. I will merely look to short the next bounce, whenever...that might occur.
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bits and pieces across the evening!

3pm update - VIX breaks 20

Well, sp'1598 failing to hold, we've seen another significant move lower to 1590. Perhaps even more importantly, the VIX has just broken the 20 threshold, for the first time since last December. Today is a massive victory for the bears.


sp'60min

vix'60min

Summary

So much is going on, hard to keep up, not least in the precious metals.

Suffice to say...

I'm waiting for a bounce to short...and it will be a HEAVY short, with a target in the low 1500s.by the end of NEXT week.
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Some very exciting..and busy trading days ahead, where the VIX is likely to be well into the 20s, possibly even 30s if the next big wave is severe.


3.12pm..watching Santelli on clown network, talking about Gold..and the four witches for tomorrow :)

Well, I'm still seeking the 1620s... am I overly patient?
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3.25pm... new lows... with the VIX making a play for 21...incredible.

The obvious thought is, what about Friday morning? Another gap down, or stabilising, and then a 1-2 day bounce?

Considering everything, I have to still believe a significant bounce is due..but even the 1620s now look a long way up.


3.37pm.. just plain ugly out there. No buyers...and with the support floor of 1598 taken out, who wants to go long?

There simply isn't any real support now until the mid- April low area of 1550/30, but with the VIX above 20, things are more severe. low 1500s very viable.

3.41pm sp'1585....almost 70pts below the high from just a few days ago.

Been such a long time since we seen this sort of trading action.

One thing that can be taken away from today...'short the bounces', at least until the lower weekly bol...currently in the 1480s

3.50pm...no buyers...no support....a brutal day for those bull maniacs, ironically,  due to the Bernanke.

VIX in the 21s...are we looking at 30s by sp'1500 ?