The VIX is in the news again this time because it has stopped negatively coorelating iwth the S&P 500. While this is true, especially in the futures, I would argue that has more to do with the complete collapse of movement in the SPX. For a week the SPX drops a little, in tiny increments, and VIX falls. Now we have the VIX rallying and futures rallying even as the SPX is up. I would argue a couple of things:
1. We are off a long weekend coming from a period of time where the SPX barely moved.
2. SPX is finally starting to wake up, even if its a rally
We all know its important to be aware how much a stock is moving relative to implied volatility. We would encourage traders to take a look at how GS has been moving and where they are pricing volatility
The SPX has now been mostly flat this week, after being mostly flat last week. VIX has cause a small bid (if you want to call it that) to get itself back near 11.5%. VVIX though has had a really nice rally the last week or so.