What Does VIX Know?

Tyler Durden's picture

A funny thing happened as US equity indices pushed to new highs - levered this time by Bond and FX markets - and following the new normal US-Open-to-EU-Close pattern. VIX, that much talked-about contemporaneous indicator of concern (or complacency) took a divergent dive. Different this time? Maybe... Or are all those downside call-writers covering their levered losses and forced buy-ins in AAPL? Seems like that initial burst of recovery is fading fast now as AAPL drops back below its VWAP.

 

The normal day-pattern continues for S&P 500 futures...

 

HY and volatility did not play along early...

 

and VIX is notably divergent now...

 

and AAPL is fading now...