VIX continues to cool

With equities closing fractionally higher, the VIX continued to cool, settling -0.5% @ 14.98 (intra low 14.82). Near term outlook is for further equity gains to the sp'2060s, which will likely equate to VIX 13/12s. The key 20 threshold looks out of range for at least another week.


VIX'daily3

Summary

*it is notable that the VIX has declined for 13 of the last 15 trading days.
--

VIX remains broadly melting lower from the lower high of 28.33 (Sept'28th).

On any daily close >sp'2060, the VIX will certainly lose the teens.

--
more later.. on the indexes

Closing Brief

US equity indexes closed fractionally higher, sp +0.6pts @ 2033 (intra high 2034). The two leaders - Trans/R2K, settled higher by 0.3% and 0.2% respectively. Near term outlook is for a test of the 200dma of sp'2059/60. Even if the market stalls and reverses.. it will not negate the threat of a second upside break attempt in Nov/Dec.


sp'60min

Summary

Little to add... on what was a mere consolidation day, before the market resumes higher into the sp'2040s.. and probably another 1% on top of that.

Equity bears should be extremely concerned about the looming ECB meeting this Thursday.. where Draghi could easily threaten increased QE and send the market on another cascade higher.

For the moment, there appears ZERO reason to be short anything.
--

more later... on the VIX

3pm update - minor chop into the close

The week has started with a day of chop.. merely consolidating, before the next push upward. All indexes look set to test their respective 200dma's within the next 3-7 trading days. VIX remains naturally subdued in the low 15s.. having broken into the 14s earlier.


sp'60min

VIX'60min

Summary

Little to add.

The gains in DIS and INTC are not to be dismissed lightly.

Nor even the reversal in NFLX... just about key support.
-

back at the close