iPath Series B S&P 500 VIX Short-Term Futures ETNArca
Description
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US dollar index is rising overnight. S&P was rejected at 3800 and on the way down since, futures see m to confirm the trend.
VVX has been looking for a bottom, while stock squeezes in GME and AMC could catalyze further volatility. Large scale rotation out of tech stocks will add to the volatility, especially if the recent uptick was a bull trap.
Yesterday's rise was accompanied by a drop in short term interest rates, and a turnaround in the trend of the dollar index. Chicken or egg?
Comment
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We hit another bottom today as the dollar was sold off in large amounts to prop up the markets. TESLA fell anyway and the S&P ran out of gas at 3800.
By the end of the day the DXY and S&P/TES:A were moving in the same direction and I think they gave up because it wasn't worth it anymore. Expect a move tomorrow barring major intervention - which could set this off too.
Comment
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The S&P was boosted today by a big sale of US dollars and also selling gold. It seems to still be working, about 3-5 minutes lag from the dollar index direction to the response from the S&P.