Whilst equities saw micro chop, the VIX continued to cool for the tenth consecutive day. The 2x lev' bullish instruments of TVIX and UVXY settled lower by -11.9% and -13.7% respectively. Near term outlook is for further equity upside.. and VIX cooling.
*first, an update on the VIX
Notably, the VIX weekly MACD (blue bar histogram) cycle is now negative for the first time since early August.
As for TVIX/UVXY.. after last weeks horror, considering the main equity market today, it was a truly lousy day for those still resolutely long-volatility.
It is one of those instances where market volatility will continue to cool, even on a day where the market was broadly flat.
*I have ZERO interest in being long VIX until the next FOMC.