A quick glance at VIX tells you all you need to know about the past two weeks.  VIX has steadily gained since Jun 7.  But, most of the gains have come in the after-hours, elevating VIX to a level from which it can make a meaningful plunge during the next day’s trading session.As ES once again pushes up against the TL connecting its highs of the past week, is it any surprise that VIX’s rising white channel is threatening to break down?

This is a classic case of algorithmic misdirection.  While equities are dipping and recovering intraday on VIX’s dramatic plunges, oil and gas have fallen about 12% from their May 22 highs, emerging markets are having a very rough go of things, and the yield curve continues to flatten.

It continues to remind me of 2011 in many ways.  Look for tomorrow’s post concerning oil and gas, inflation, interest rates and equities – then and now.

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