Whilst equities built gains across the day, the VIX naturally melted lower, falling into the 11s for the second consecutive day. With a micro pop into the close, VIX settled +1.0% @ 12.03. Near term outlook is for VIX to remain within the 14/11 zone, although 10s now seem viable.
VIX'daily3
VIX, weekly
Summary
So..another day of VIX 11s, and now the issue is 'just how crazy low can the VIX go?'
The 10s seem very possible, if sp'1910/20s into early June.
However, how about single digit VIX before the current multi-month wave (from Oct'2011) is complete?
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It was the second consecutive daily gain for US equities, sp +4pts @ 1892. The two leaders - Trans/R2K, settled higher by 0.5% and 0.9% respectively. Near term outlook is broadly bullish into mid June, at least to the sp'1910/20s, which will likely equate to VIX in the 10s...even 9s.
sp'60min
Summary
There really isn't much to note.
Market opened with minor chop, and with no sell side volume, the market slipped into algo-bot melt - as also reflected in the VIX. No doubt, the fact we have a 3 day weekend ahead, is helping this situation.
Tomorrow, looks to be even quieter, and on balance, that will favour the bulls.
*I remain content to be on the sidelines, will consider a new long position next Tue/Wed, but most certainly, I have zero inclination to attempt any market shorts.
US equities look set to close higher for the second consecutive day, with a daily close somewhere in the sp'1890s. Further upside looks viable tomorrow, and with a new historic high on the Transports today, the equity bulls can start to look forward to June.
sp'daily5
Summary
*again, it is notable that the Transports is trading in new historic territory.
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There really isn't much to add. With a 3 day weekend ahead, market is relatively quiet, and as we're seeing, it is a case of low volume algo-bot melt.
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Meanwhile, in more important news...
Bears sure need to be rescued from today's gains.
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Notable weakness remains in the coal miners, BTU -2.7%
