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
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.