U.S. VIX equity volatility rolled back over again
U.S. VIX equity volatility rolled back over again after stalling under 18.0 yesterday, sinking 7% to 15.25 lows before finding traction. The upmove yesterday was on the shoulders of weak China trade and financials, but the mirror image today was found in the bounce in China inflation data and better than expected earnings from JPM, Wells and Citi. This boosted stocks 0.5% on top of yesterday's sharp rebound from lows. The VIX should find some bid interest on dips, however, with the personalization of the election reaching fever pitch this month. The 50% retracement of the 11.65-20.51 September range comes in at 16.08, which could anchor for now, while a similar 50% level on the S&P 500 resides at 2,153 compared with 2,141 presently.