CBOE's short-term VIX product [3](which tracks the implied volatility in stock options for a 9-day maturity) dropped to its lowest since inception this morning at 10.16%. The spread to the more 'usual' maturity VIX index is over 3.3 vols which isthe most inverted on record and thus the most short-term complacent equity investors have been since the lows in 2009. The exuberance of the last few days is equally and oppositely matched by the sheer lack of enthusiasm in volumes. S&P futures volume is 33% below recent averages today and as the chart below shows, it is clear where the volume in this "market" remains.
Short-term VIX drops to its lowest on record - and complacency is at its highest since the lows in 2009
[4]
Volume for the entire ramp has been dramatically below average and today's is 33% below average...
[5]