Market Recap – June 24, 2013

It is getting late, so I’ll keep this post short tonight.

Today, the markets continued the decline that started last week. Volume contracted again on SPY. I don’t think we’ve put in an intermediate term bottom yet, but the contracting volume may be a precursor to a relief bounce (rally may be too strong of a word).

VIX pushed a slightly higher today than it did on Thursday. The VIX term structure is now very flat, but technically still in contango. The difference between July 2013 and January 2014 VIX futures is now less than 2.00. If the VIX continues to climb, I will be surprised if the term structure does not flip into backwardation. It would be easy to do from here.

Today’s charts are below, courtesy of and Trading Volatility.

Disclosure(s): Short volatility at time of writing

SPY daily chart VIX term structure chart $NYMO $BPSPX $USHL