Good Mornings Friends, PLEASE look at the downgrading going on. Downgrades are coming in hot and heavy, 50 downgrades JUST today. And I’m expecting more downgrades and further downgrades to the downgrades. Analysts FINALLY waking UP!
Volatility increases if SPX breaks key gamma levels at 3900 and 3800, and at the moment SPX is trading below 3900. If at open we keep pushing down, we should expect the Volatilty to Spike because the“’acceleration” of gamma is greater the further DOWN we press. So the SPX price is what will effect VIX not the other way around. We often have the tail (VIX) waging the dog (SPX).
if 3800 holds as support and 3900 as resistance then we’re kind of in a boring neutral range, but I’m wondering how much those downgrades will effect Monday sentiment.