Volatility breaks into the 12s

Despite a little rally into the close - where the VIX settled +2.5% @ 14.15, more importantly, the VIX broke a new low of 12.89. The VIX looks set to decline into year end, remaining in the 15/11 zone. VIX 20s appear highly unlikely until at least late January.


VIX'60min

VIX'daily3

Summary

I can't take the latter day rally in the VIX seriously. Yesterday was a key turn/break, and the little afternoon bounce into the 14s, is arguably just that...a bounce.

Equities look set for further upside into the Friday close, and if that is the case, the VIX will surely close the week in the low 13s..even the 12s.
-

more later..on the indexes

Closing Brief

The market saw some minor chop..a day of consolidation, with sp -1pt @ 1809. The two leaders - Trans/R2K, settled unchanged and -0.7% respectively. The near term outlook remains very bullish, with a year end target zone of sp'1830/50.


sp'60min

Summary

A pretty understandable day of chop, after what were powerful Wednesday gains.

There really isn't much to add. With heavy QE tomorrow, bears face the usual problems.

--

bits and pieces across the evening

3pm update - closing hour gains

The smaller 15/60min index cycles look very bullish into Friday, with a weekly close in the sp'1820s. Metals remain very weak, Gold -$23. VIX is flat. There remains simply no reason for equity bears to have any interest in this market for some weeks..if not 4-5 months.


sp'15min

Summary

Suffice to say...market looks fine.

Huge underlying upward pressure...and the QE is no doubt helping to negate what little sell side there is.
-

Notable weakness: TSLA, -5%,

Strength: BTU +3%.