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VIX Drops For 10th Day In A Row, Breaks Significant Technical Support

Submitted by Tyler Durden on 10/12/2015 12:11 -0400

For the first time since October 2010, VIX has fallen for 10 straight days (crashing from over 28 to under 17). The collapse in the 'fear' index has also broken it back below its 200-day moving-average for the first time since breaking above on August 19th.

Down 10th day in a row:

Breaking the 200DMA:

And after first decoupling after the August flash crash, then re-coupling two weeks ago, SPY-XIV has once again broken its historical relationship:

Note the recoupling lower in the SPY-XIV pair trade, just as we predicted on August 30 with our "no-brainer" trade idea.

XIV - ES: "no brainer" pair trade of the week pic.twitter.com/sAIanK2gMW

— zerohedge (@zerohedge) August 30, 2015

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Mon, 10/12/2015 - 12:16 | 6658707 DogeCoin

All is well. BTFD.

Mon, 10/12/2015 - 13:53 | 6659264 Nenad

Obama will not finish his second term! Current Events Linked to Ancient Biblical Prophecy!

http://motivationdose.com/is-america-babylon/

Mon, 10/12/2015 - 16:41 | 6660030 Seal

So Biden will run as the incumbent

Mon, 10/12/2015 - 12:16 | 6658711 Dr. Engali

It's comforting to know that Kevin is back on the job.

Mon, 10/12/2015 - 12:17 | 6658723 Serfs Up

The entire stratergy of the Matrix(tm) is this: Buy stawks, sell gold.

Mon, 10/12/2015 - 12:20 | 6658731 yogibear

William Dudley of the NY Fed is back from vacation.

Mon, 10/12/2015 - 12:20 | 6658734 venturen

QE4 and NIRP are a lock! and QE5 and QE6...

Mon, 10/12/2015 - 12:26 | 6658762 yogibear

For sure. it's a plan everyone is waking up to.

Any talk of raising rates will disappear.

Mon, 10/12/2015 - 13:01 | 6658950 Vlad the Inhaler

After QE4 fails to accomplish anything, they'll have to move on to other even worse plans. Investors won't go for buybacks to infinity. Fear will take over at some point.

Mon, 10/12/2015 - 12:23 | 6658748 undercover brother

BREAKS is the keyword in the title of this article and accurately describes what the central planners have done to a perfectly good capital market.

Mon, 10/12/2015 - 12:29 | 6658776 Oldballplayer

Yup. The correction is over. The VIX will never go over 20 again. Ever. Nice smooth sailing from this point on.

China is coming up roses. The earnings season is wonderful.

Robust wage growth is coming. Its just around the corner.

Mon, 10/12/2015 - 12:32 | 6658791 hound dog vigilante

VIX'ed is fixed.

Mon, 10/12/2015 - 12:59 | 6658940 Consuelo

Amazing, in the face of obvious and real-time geopolitical upheaval, for U.S. markets to be so calm. I reckon what drops to surreal levels of complacency can also rocket to surreal levels of panic too, so... Oh well. Mountain House food is still available as are poly fuel cans, so there's that.

Mon, 10/12/2015 - 13:12 | 6659015 Chad_the_short_...

I hope this continues. I keep buying VXX puts every Monday. Bought VXX October 30th $17 puts for .03c. I'll be very happy if VXX hits a new alltime low by then lol

Mon, 10/12/2015 - 14:21 | 6659418 Trips Trading