Volatility is back! Yesterday's opening drive pushed into Wednesday's upper distribution then attempted to trade up to Tuesday's close which Wednesday has failed to do. Buyers failed to close this settlement gap and there was a sharp liquidation back into the overnight range. The Vix closed above 20 and 3.9 bn shares traded on NYSE. The rollover to March and the last week before quarterly options expiry will have added to the volatility.
Despite the sharp sell off, value was overlapping higher relative to Wednesday.
This is the December contract still which is +7 points to March.
The Dec overnight range is currently 2016.50-2031.75. Wednesday's prominent vPOC and settlement at 2026.25 will be an important pivot initially. Failure to hold above there should see continued downside towards the next area of high volume below. If the market can push back into yesterday's range, there is potential for a sizeable rally. The continued weakness in crude is weighing on the market.