The VIX was sporting that classic head and shoulder pattern. Let's face it, head and shoulder patterns on the $SPY haven't worked out so well over the last 8 years, but the VIX? Any bearish formation usually resolves as planned for the VIX. As such yesterdays recovery... would it follow through today? I posted this chart in the chat room:
The VIX dropped 25% yesterday. It was a nasty reversal, usually something we are accustomed to seeing right after a VIX spike. Oddly enough the VIX was performing out of the ordinary the last few weeks. The gains were holding. You could even make a case that the 'fear index' was consolidating!
Earnings season is now under way. Last night $NFLX reported earnings and hit a new record high, but the move was well under the move the market was expecting. This morning the stock is set to open marginally higher, giving the option sellers the win on both sides of the chain. Historically Netflix has offered some tremendous out of the money trades into the report.
S&P500 futures are flat to start today's trading session, digesting the rallies from Monday and Tuesday.
The market closed at new all time record highs, is the top finally in?