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A growing sense of uncertainty and slow acceptance of risk revaluation are taking their toll on markets this week. This uncertainty, however, seems to be creating a large number of possible arbitrage situations over yields, commodities, and capitalization indexes.

• The S&P 500 ETF has lost significant strength against the 5-year yield over the past 5 days.
• The VIX lows over the past two sessions seem to indicate an uptrend in the short term, in contrast to a number of similar volatility shocks recently discussed in the community.
• The Russell 2000's return and volatility are significantly lagging the S&P after Tuesday's session. Watch for opportunities to accumulate if we see signs of the VIX dropping.

click to enlarge

small vs. large 5-day