Stocks have lost their way lately and can't really make a move anywhere. Mostly that has got VIX moving with VIX cash moving to the mid-13's. Yes you heard that we rallied hard to the mid 13s. VIX Jan futures are getting close to 15. This in a market where 60 day realized vol is still in the single digits. VIX is pricing something that will happen next week. Maybe around a surprise in rates to go along with the higher volatility in the rate complex.
I guess at the end of the year stocks have finally run out of steam. After opening at higher levels and ralling hard on Tuesday after Christmas buyers finally got tired after shopping. The strange thing is that the upside skew in the SPX for the end of the year is tilting bullish. Take a look at the skew:
While the question is: Will OPEC stick to its reduced output targets. Mean while the option market is saying something else. Look at OIV (the oil VIX):