The VIX is making higher lows as the week goes on and is presently at a crossroads as its bands and moving averages converge.  I'm looking for the afternoon trend to be established between 1 and 1:30 EST, and in the event that the VIX breaks lower, I am relatively confident that we should see the market returning to a more comfortable level of action through the rest of the week.

    Note again that there seems to be good opportunity to arbitrage on the market uncertainty, even if one only plays inverse volatility spreads across indexes.

    I'm watching the $1505 SPX puts for possible strong market move signals.  If ask breaks the intraday high (> $10.50) or bid hits an intraday low (< $7.30), look for the market to return to unchanged or break above 1% into close respectively.