The Hell…? VIX Oddity

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by Chris

Sometimes there’s a glitch in the quote feeds for a minute, or two.  Rarely for five whole minutes.

So I let a very bizarre VIX (a huge slam lower) reading go by for five minutes before I thought much of it.

Now we are 35 minutes into the strange reading so I am presenting it here.

I don’t know what to make of this yet, but the general proposition is that when the VIX goes down, stocks go up and vice versa.

This is a huge slam right here, especially given today’s action:

Meanwhile stock index futures are red, declining slightly and not participating in this VIX slam.

The possibilities are:

  1. These are bogus quotes…just a bad reading
  2. Somebody is slamming the VIX hoping for a stock futures response, but not getting it
  3. Stock futures will respond, but with an unusual lag (they are usually right there, tick for tick with the VIX, with no delay)
  4. Something else has broken and the markets are now disconnecting from each other.

I just don’t know yet, but this was unusual enough that I thought I should bring it to your attention.

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