During the night the VIX executed a $5 swan dive, but it didn’t hit the water, but bounced off a trampoline and blasted right back up. These things do happen with regularity, but it did not show up in line type settings. For the fun of it, I call these computer algorithms gone wild! The speed they drop and return back up is just to fast for a super mouse clicker to generate. It seems that investors are so accustomed to low volatility, that they freak out when volatility shows up! From my perspective volatility in an asset class is a sign of a trend change in progress. In the case of the VIX it could be a bear trap as the VIX bearish phase could completed.
This could be a wave 2 low as not the daily charts look like a decent correction. Get ready to adjust your sails, as the wind is going to change direction soon.