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:
- These are bogus quotes…just a bad reading
- Somebody is slamming the VIX hoping for a stock futures response, but not getting it
- Stock futures will respond, but with an unusual lag (they are usually right there, tick for tick with the VIX, with no delay)
- 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.