In a broader perspective, the market remains in a state of balance. In the short-term, I will monitor today’s afternoon rally high at 4801, considered weak.
Be careful using VIX as an indicator to confirm weakness or strength. While often it is negatively correlated with ES, it measures a moving target (ATM SPX options) an options dynamics can change. For example, in the event of a melt up in equities, I fully expect to see VIX *rise* as call options become strongly bid. In short, VIX It's not the same animal it was even a couple of years ago because the options market has evolved rapidly in a short period of time.
Thank you, buddy! It was another smashing day, I had two losses but in the end was green.
Thank you, for your great work 🍀
Be careful using VIX as an indicator to confirm weakness or strength. While often it is negatively correlated with ES, it measures a moving target (ATM SPX options) an options dynamics can change. For example, in the event of a melt up in equities, I fully expect to see VIX *rise* as call options become strongly bid. In short, VIX It's not the same animal it was even a couple of years ago because the options market has evolved rapidly in a short period of time.
Thank you!