Algos to VIX: Thank You for Your Service

When USDJPY, WTI and TNX all plunge, stock prices almost always follow suit.  When they don’t, it’s usually because VIX is signaling the algos that there’s nothing to worry about.

It’s no surprise, then, that the three equity breakouts (the purple, gray and white channels) we’ve seen over the past month have all been precipitated by breakdowns in VIX.

It’s particularly common on weekends and during low-volume holiday weeks and is frequently contrary to the economic news of the day.

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