As mentioned by Mushroomz in the comments, the $VIX finally knifed through it’s multi-month support of 20 and closed at a fresh 52-week low of 19.54%.
There’s been substantial correlation between the Miracle Meltup in the markets and the slow meltdown in the $VIX, which has dropped from the mid-50s to now below 20. I see no reason that this should change and thus I would expect the market to resume its previously established trend (before this month-long borefest)…presuming, of course, that the $VIX will follow through on this break and continue its swoon to the low teens:
(Nevermind that long tail, btw…looks like some bad data on thinkorswim’s part…)
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Oddly enough, the CBOE index put:call ratio ($CPCI) also registered an egregious low reading: 0.57 – the 4th lowest in the 6+ year history of this statistic (so almost exactly twice as many calls as puts were traded today)!
The dichotomy here is that the $CPCI is a contrarian indicator, especially when it swings this far from the moving average (we’re talking 3 standard deviations from the 6-mo.avg. (1.34) in this case)…
(shakes head)….
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Shakes head!?
But….why?
Or are you just indicating your disagreement?