Despite the big sell off today the VIX is still not worried.
Yes, the VIX went up today.
But, it did not break 30.
The VIX did not make a crazy move higher.
Most importantly, the VIX did not go into any kind of backwardation.
The curve got a whole late flatter
But as a whole, the VIX is still the same.
I would note that August and September are now about the same, that is important.
But July continues to price the market going higher.
This lends to my thoughts that we could see the market rally higher.
The market has a day of reckoning coming, but VIX is not there yet.
If we get a follow up sell off, it probably gets bought.
At some point soon…
That will not happen.
The VIX Traffic Light is Red (orange).
Your Only Option,
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