US equities might be hovering near their 6-month low after the S&P500’s 25% decline but the VIX, or fear gauge, has already dropped over 15% suggesting traders believe any further short-term weakness will be limited. This sort of divergence near a low for stocks is often the sign that a bounce is coming as the professional money starts to remove its bearish bets but we caution it’s more of a supporting characteristic as opposed to a lone trigger to start buying.
MM is bearish the VIX into July
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