CHART OF THE DAY: US Equity Volatility In #Quad2

05/26/21 07:57AM EDT

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

From a Vol of Vol perspective, here’s how my patient process scores US Equity Volatility this AM:

  1. VIX = Bearish TREND with immediate-term downside towards 16.30
  2. VXN (NASDAQ Volatility) = Bearish TREND with immediate-term downside towards 21.06
  3. RVX (Russell Volatility) = Bearish TREND with immediate-term downside towards 22.95

What’s been interestingly but not surprisingly consistent in 2021 is that every (monthly at this point) Volatility Spike we’ve experienced in US Equities has resulted in a lower-high at the top-end of my Volatility Risk Ranges.

I always get asked about when volatility is going to breakout for real. I rarely get asked about when it’s going to hit new Cycle Lows. Why? A: human nature. Consensus remains net SHORT of SPY, IWM, etc. don’t forget.

CHART OF THE DAY: US Equity Volatility In #Quad2 - 5 26 2021 7 53 16 AM

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