This week, the bears moved in and exacted their vengeance. First, a 23-standard deviation VIX ETP rebalance flow spelled the end for XIV and mortally wounded SVXY, two vehicles that have been the bane of bears’ existence as they represent the source of market skeptics’ pain: suppressed equity vol.
The next morning, the VIX spiked to 50, its highest intraday since the yuan deval:
Stocks tried to recover over the next two sessions but on Thursday, the bottom fell out again as the Dow fell more than 1,000 points for the second time in a week. Stocks entered a correction from their January highs:
Full weekly summary (and by God it's epic) here: