Even with the VIX we see that algorithms were in control at one time, but it is starting to look like the human VIX traders are starting to break free again. There is no real way of proving that these tight wave formations are computer generated, but no human or groups of humans can trade this fast and within a very tight price range.
The VIX did drop down a bit lower to the $9.11 price level before it violently moved back to the upside. All bottom gaps are now filled with two gaps open well above present prices. The COT reports are not updated until the end of the trading day, so I quickly scan them to look for ratios that are out of wack or very distorted. My bet is that Commercials added long contracts this week while the speculators added to their short positions. Both groups can’t win as one group would be in a bear trap and the other would be a bull trap.
As much as this start to a bullish phase can turn out to be nothing, as stocks may yet prove to still have life in them.