VIX Testing Long Term Downtrend (at 32.81)

The VIX is seeing activity with the recent market weakness and pending GM bankruptcy. It looks like major GM bond holders OKd a revised debt-equity deal which could put a cap on volatility but watch out for a rough reorganization, runaway Treasury yields and activity in North Korea. Option premium could get a bid if the downtrend in fear gets broken, at least in the short term. Watch the 33.24 resistance level. We'll see what happens.

VIX (Volatility Index) 2 Month Chart

More posts:
VIX Around Pre-Lehman Bankruptcy Levels, $29.14 (May 19, 2009)
VIX Support at 30, Implied Volatility and Futures Trending Higher (May 11, 2009)

Also check out today's Volatility Sonar report at There were some bullish trades.