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VIX closes below 27 for first time since Sept 2008 Print PDF

The CBOE Volatility Index (VIX) closed today at 26.36.  This broke the recent 27 to 33 closing range on this measure of index option volatility, which had been oscillating around the 30 level.  This was the lowest close on the VIX since September 12, 2009.

I view the close below 27 as fairly significant and could presage further short-term downside in the VIX. On the other side, the fact that the VIX did close below its Bottom Bollinger Band (aqua line) today could be viewed as a bit of an over-extended complacent move. It still remains above its Bottom Acceleration Band (purple line), which lies just above the 25 level.

 



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June 24, 2009 Posted by Moby Waller | VIX, implied volatility, CBOE Volatility Index
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karlmeis
Triple Bottom
written by karlmeis, June 25, 2009

I see dead people, no no, i met i see a triple bottom, does this mean the VIX will soon rise again, Bottoms Up?
mwaller
Triple
written by mwaller, June 26, 2009
One man's triple bottom is another man's technical breakdown - shouldn't the third bottom hold the same level as the other 2? (around 27). But I see your perspective, and you may very well be correct.

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