For the most part today was a sleeper. Most everything sold off after tremendous runs to all –time highs in SPX and NDX yesterday. You know things are nuts when TWTR, yes I bought more juice in there last week, is the market leader for a day. Much of the action in VIX this year, when there was any, has been around politics. DJT seems to keep the volatility around himself and somehow it does not translate to equities except on Russia news snippets. The month of December has been ruled by Congress and I predict that is how the month will end.
Any down day in a week for the SPX that does not see many is significant for VIX. Not that VIX moves a ton yet but for what it sets up going forward. For VIX traders VIX should go up when SPX drops but this is really not a big move on a percentage basis for SPX. After all, the move was less than .50% for SPX but a full 1 point pop in VIX. Even in low vol the VIX cash moved seem a bit rosey.