In the current market climate it is hard to imagine that the Volatility indexes are headed back towards intermediate-term lows. Should the market perceive the Fed’s action to be bullish, the indexes will likely again touch down on their 200 day moving averages. A swift move down to this area will place the indexes in extremely oversold conditions.
All three indicators are already oversold, or nearly so.
A break through the 200 day moving average would mean that this Santa Rally may sprout even bigger legs and have some long-term sustainability.
Keep in mind the possibility that there may be another volatility spike which would keep these indexes following a similar pattern of up / down within the recent range.
Hopefully today will provide some clarity.
I guess we know now where the VIX and VXN are headed.
Wood wins!
I think it is early to say that, although I’m watching things on a 20 minute delayed yahoo quote. More on that later. Maybe real time would have me convinced.
Well, Jake wins at least. (g)
Jake, you win today, but I just won continuously for the last 2 weeks.
You forgot to add “In candy colored Sawzall-world, that is.”
Yeah, can’t say I wouldn’t have liked to bank coin the last two weeks. As it stands, work is really cramping my trading, so I don’t know that I would have been able to get out in time today.