Last week the XIV saw the largest price drop in over a year falling over 23% from the July 26th High. After bottoming on August 10th the XIV moved back higher stalling out just under the 61.8% retrace level in what counted best as a corrective move higher.
Since topping on August 15th the XIV has once again broken back below last week’s low at 72.44. The break of the 72.44 low has giving additional confirmation that the high that was struck on July 26th was indeed a larger degree top. This is suggestive that the XIV still has some work to do to the downside prior to this moving back to new highs once again.
The VIX Index has now closed over the 11 level for 8 consecutive sessions. From a longer-term perspective, this is not news as the VIX typically is well over the 11 level. This is, however, the longest streak that the VIX has closed over 11 since April of this year. On Friday, August 11th the VIX Index closed at 14.98 again still very low from a historical perspective.
What is interesting is that we are now beginning to see calls for the VIX to hit 60 by October of this year. Keep in mind these are levels that have not been seen since the 2008 financial crisis. While I do think it is very likely that we once again see some volatility return to the market into the fall done I do not think the VIX is quite ready to hit 60 just yet.
This post was published at GoldSeek on 22 August 2017.
Follow on Twitter
Recent Comments