VIX crushed for a fifth day

Despite opening +6% to 14.93, with equities seeing an immediate reversal, the VIX quickly cooled, and settled lower for a fifth consecutive day, -2.0% @ 13.35. Near term outlook offers very little to equity bears/VIX bulls.. as the market appears able to ignore any bad news.


VIX'60min

VIX'daily3

Summary

*a rather stark bearish engulfing daily candle
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A classic opening black fail hourly candle in the lower end of the gap zone, and that was a clear warning to the volatility bulls that renewed cooling was due.

No doubt the VIX will pop back into the upper teens at some point... but right now.. that looks some weeks away.

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more later... on the indexes

Closing Brief

US equity indexes closed moderately higher, sp +13pts @ 2094. The two leaders - Trans/R2K, settled higher by 0.3% and 0.7% respectively. With the Dow having broken the Nov' high, and >18k, the outlook into the summer unquestionably favours the bulls.


sp'60min

Summary

*closing hour action: micro chop, but (as is almost always the case) leaning to the upside, and breaking a new multi-month of 2094.66.
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... and thus concludes one of the more bizarre trading sessions of the last few years.

Its not even the fact that the Dow broke the Nov'2015 high. Its the issue that with Oil -6% last night.. the market barely reacted, with (at worse) the equiv' of a -0.7% decline.

The fact that indexes then turned positive by 10am was a seriously disturbing thing to witness.

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Sure, we could easily cool 2, 3.. even 4% by end month, but why would we? Regardless of what the FOMC decide next week, does it even matter?

The market looks damn strong now. It can't be denied.
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more later... on the continually cooling VIX.

3pm update - two percent away

The sp'500 has come within a mere 2% of breaking the May'2015 historic high of 2134. Considering the markets ability to completely shrug off multiple negative issues, it bodes for further gains into the early summer. The equity bears are losing what little hope remained.


sp'weekly

Nasdaq comp', daily

Summary

Besides the sp'500 and Dow, the Nasdaq comp' is set to re-take the giant psy' level of 5K.

A moderate retrace into end month remains viable.. but the fact we've broken another set of key levels today argues against taking any future downside remotely seriously.

After all.... its all considered bullish now... even a BREXIT vote.
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back at the close