Short Term Trade: When the VIX spikes and then closes below the previous day level the next day, it leads to a period of positive returns for equities.
This is a micro call not a long term secular trend.
What this tells me is the low in equities is in here.
Look at the moves in the VIX using intraday levels and closes to see where this happened on June 24th, 30th and again in August…
