The VIX term structure is completely out of whack by my count is about 30-45% too steep. If you want to know why this is important read my EBOOK on the fear gauge.
The VIX Oct future has about 3 weeks to expire. At this point the spread between the VIX and the VIX future should be about 1-1.25 points. With the VIX on the rally that spread should be even tighter. Yet, as I review the market, Friday we saw the VIX spread at about 3 points and today, even off the weekend with VIX up over 2 points, the spread between cash and VIX Futures are almost 2 points. That is extremely wide: