“Index of fear” shows that the group of commercials gradually comes out with a long position, open interest is reduced, the price gradually returns to the range of the flat.
Correlation with the ES 500 index shows that the ES 500 index after correction will resume its growth.
Since the last post Commercial twice built up a short position – both times VIX sharply soared above 11.5 points, followed by returning to 9 points.
Both times, the index e-mini SP500 does not fall below the previous low – positive divergence.
At the moment, open interest is declining, possibly reducing volatility.
Futures on VIX are again in a flat state, still in divergence with the S&P500. The position of Commercial decreased (with the reduction of open interest). Further, we can expect the quotes stabilization in the range of $9 – $11.5.
- E-mini SP500 (/ES);
- 30-year US Bond (/ZB);
- Gold (/GC);
- Bonds yield (TNX, TYX, FVX);
- Crude oil (/CL).
The comment will be later…
VIX enters the area of the flat movement – open interest grew when the long position of the Commercial group was reduced.
The maximum SP500 index in July was updated, at this time VIX can not update at the minimum (8.84).
At the same time, open interest in the long positions of the Commercial group is growing.
One of the most interesting moments to date …
… the growth of the position of the Commercial group against the background of the growth of open interest indicates the propensity to purchase “insurance” in case of a fall in the stock market.